Home improvement retailer Lowe’s (NYSE:LOW) will be announcing earnings results this Wednesday before the bell. Here’s what investors should know.
Lowe's beat analysts’ revenue expectations last quarter, reporting revenues of $23.08 billion, up 10.3% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ gross margin estimates but full-year EPS guidance slightly missing analysts’ expectations.
Is Lowe's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Lowe’s revenue to grow 8.9% year on year, improving from the 1.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Lowe's has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Lowe’s peers in the home furnishing and improvement retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Floor And Decor delivered year-on-year revenue growth of 3%, beating analysts’ expectations by 1.6%, and Arhaus reported revenues up 7.4%, topping estimates by 4.9%. Floor And Decor traded up 4.1% following the results while Arhaus was also up 16.6%.
Read our full analysis of Floor And Decor’s results here and Arhaus’s results here.
Investors in the home furnishing and improvement retail segment have had steady hands going into earnings, with share prices up 1.8% on average over the last month. Lowe's is up 5.7% during the same time and is heading into earnings with an average analyst price target of $261.06 (compared to the current share price of $216.29).
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