LOW stock was down on Tuesday following the release of the company’s earnings report for the third quarter of 2018.
The bad news for LOW stock comes from Lowe’s (NYSE:LOW) same-store sales growth for the third quarter of the year. The company notes that same-store sales growth was 1.5%. This is below Wall Street’s same-store sales growth estimate of 3% for the quarter.
Lowe’s also made another major announcements during the earnings report that may be affecting LOW stock. The company says that it is planning to exit its Mexico business. It is also considering strategic alternatives and businesses to exit in the U.S.
“Our top priority in the third quarter was positioning Lowe’s for long-term success by identifying underperforming or non-core businesses and stores for divestiture,” Marvin Ellison, Lowe’s President and CEO, said in a statement. “With our strategic reassessment substantially completed, we can now intensify our focus on the core retail business.”
When it comes to the rest of its earnings report for the third quarter of 2018, Lowe’s didn’t do badly. The company reported earnings per share of $1.04 on revenue of $17.42 billion for the quarter. This has it beating out Wall Street’s earnings per share estimate of 98 cents for the quarter, as well as coming in above revenue estimates of $17.36 billion for the period.
LOW stock was down 4% as of noon Tuesday, but hasn’t moved much since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.