Lowe’s Earnings: LOW Stock Dips 4% on Disappointing Guidance

LOW also missed revenue estimates

Lowe’s (NYSE:LOW) earnings for the home improvement retailer’s fourth quarter of 2019 have LOW stock taking a beating Wednesday. That’s despite its adjusted earnings per share (EPS) of 94 cents. That’s better than Wall Street’s estimate of 91 cents. However, its revenue of $16.03 billion misses analysts’ estimates of $16.15 billion.

Lowe's Earnings: LOW Stock Dips 4% on Disappointing Guidance
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Here’s what else is worth mentioning from the most recent Lowe’s earnings report.

  • Adjusted EPS is up 17.5% from 80 cents during the same time last year.
  • Revenue comes in 2.43% higher than the $15.65 billion reported in the fourth quarter of 2018.
  • Operating income of $958 million is a major improvement year-over-year from an operating loss of -$567 million.
  • The Lowe’s earnings report also includes a net income of $509 million.
  • That’s much better than the company’s net loss of -$824 million in the same period of the year prior.

Marvin R. Ellison, Lowe’s President and CEO, said this about the LOW stock earnings:

“In the fourth quarter, we delivered profitability that exceeded our expectations given strong expense management, improving gross margin and enhanced process execution.  Our sales growth was driven almost entirely by our U.S. brick and mortar stores, supported by our investments in technology, store environment and the Pro business.”

The Lowe’s earnings report also includes its outlook for 2020. This has it expecting adjusted EPS ranging from $6.45 to $6.65. Unfortunately for LOW stock, Wall Street’s estimate is for adjusted EPS of $6.67 during the year.

LOW stock was down 4.36% as of Wednesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/02/lowes-earnings-drops-low-stock/.

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