Stock

Lowe’s Q1 results: same-store sales decline is not ‘that big of a deal’

Shares of Lowe’s Companies Inc (NYSE: LOW) are down 4.0% on Wednesday after the home improvement retailer blamed unseasonably cold temperature for lower-than-expected sales in fiscal Q1.

Key takeaways from Lowe’s Q1 results

Net income came in at $2.33 billion that translates to $3.51 per share.In Q1 last year, net income was $2.32 billion or $3.21 per share.Sales slid 3.1% YoY to $23.66 billion, as per the earnings press release.FactSet consensus was for $3.22 of EPS on $23.77 billion in sales.Same-store sales were down 4.0% versus a 2.5% decline expected.

A 3.8% decline in U.S. comparable sales, however, was better than a 4.2% decline that experts had forecast.

Future outlook

For fiscal 2022, Lowe’s reiterated its guidance for EPS in the range of $13.10 to $13.60 on up to $99 billion in revenue. The Mooresville-headquartered company plans on buying back $12 billion worth of its stock.

Oppenheimer analyst reacts to the earnings report

According to Oppenheimer’s Brian Nagel, a 4.0% decline in Lowe’s comparable sales is not “that big of a deal”, even after peer Home Depot reported same-store sales growth yesterday. On CNBC’s “Squawk Box”, he said:

Lowe’s is more focused on the outdoor DIY category. Home Depot yesterday said there’s been a slower start to Spring. But as the spring weather has finally come, these seasonal products have picked up. I think Lowe’s will say the same.

He sees the stock down more than 25% from its year-to-date high as “quite cheap”.

The post Lowe’s Q1 results: same-store sales decline is not ‘that big of a deal’ appeared first on Invezz.

Disclaimer: MonopolyWinnersUpdates.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 MonopolyWinnersUpdates.com. All Rights Reserved.

To Top