Lowe's (NYSE: LOW) shares rallied Wednesday after the company reported earnings before the opening bell, topping analyst earnings and revenue expectations.
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The retailer posted earnings per share of $3.27 on revenue of $23.48 billion, topping consensus estimates of $3.10 per share on revenue of $23.13 billion.
The company also raised its full-year outlook and now expects adjusted earnings per share between $13.65 and $13.80.
In addition, Lowe's told investors in its earnings call that it is “not seeing anything that feels or looks like a trade down or consumer pullback,” and they have actually seen trade up in place across a number of categories.
Following the earnings release, Wells Fargo analyst Zachary Fadem noted that with sentiment slightly warming, Lowe's gave the “bull case a boost” in Q3. Fadem added that macro headwinds aside, he sees “few holes to poke” with idiosyncratic margin levers, a probable bullish Analyst Day, and otherwise “cheap” valuation for a retailer performing at this level. He acknowledged “the housing elephant in the room” is unlikely to go away but sees improving risk/reward for the stock and maintained an Overweight rating and $245 price target on the shares.
Elsewhere, Piper Sandler analyst Peter Keith increased the firm's price target on Lowe's to $253 from $248, keeping an Overweight rating on the shares, stating the company reported a “very solid beat-and-raise Q3 earnings print.”
