Lowe’s Companies (LOW) reported robust results in the third quarter. The home improvement retailer’s company reported adjusted earnings of $2.89 per share in the third quarter, above consensus estimates of $2.82 per share.
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Furthermore, the company posted revenues of $20.2 billion in the third quarter, compared to $20.5 billion in the same period last year. This surpassed Street estimates of $19.9 billion. In addition, the retailer’s comparable sales declined by 1.1% in Q3, due to continued softness in the demand for big-ticket do-it-yourself (DIY) discretionary projects.
LOW Raises Guidance
Looking ahead, the company raised its FY24 outlook and now expects its total sales to be in the range of $83 to $83.5 billion, compared to its prior guidance between $82.7 and $83.2 billion. In addition, LOW narrowed its forecast for comparable sales and anticipates them to decline in the range of 3% to 3.5%, from its prior projection of a drop between 3.5% and 4%. Furthermore, Lowe’s now expects adjusted earnings to be in the range of $11.80 to $11.90 per share, compared to its previous outlook between $11.70 and $11.90 per share.
For reference, analysts expect the company to report earnings of $11.81 per share on revenues of around $83 billion.
Is LOW a Buy or Sell?
Analysts remain cautiously optimistic about LOW stock, with a Moderate Buy consensus rating based on 16 Buys and seven Holds. Over the past year, LOW has increased by more than 30%, and the average LOW price target of $287.59 implies an upside potential of 5.8% from current levels. These analyst ratings are likely to change following LOW’s results today.
