Key points:
- Lowes announces a mixed first-quarter, not quite hitting the same mark as rival Home Depot
- EPS was pegged at $3.51 per share on consensus of $3.21, but the company fell short on revenue
- A slow start to the warmer weather weighed on outdoor sales
- key point
Walmart and Target both revealed a difficult first quarter, but with Home Depot pointing to a firm trend in home development, investors might have been looking at Lowes (NYSE: LOW) for more of the same. At this point in the year, it might be no surprise to hear that Lowes delivered a mixed earnings bag, and shares seemingly tumbled nearly 4% in premarket trading. It’s becoming a recurring feature of today’s investment landscape. If there is a hint of uncertainty or a slight muddiness – bears follow in dictating the market.
Lowes shares were trading down this morning after the company failed to hit the mark on revenue, despite beating expectations on net income. The company recorded EPS of $3.51 per share, jumping past analyst expectations of $3.21. Revenue was a different story though, with the company’s $23.6B falling just short of the $23.7B consensus.
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Unlike the string of retailers that have reported earnings in the last few days, Lowes didn’t seem adversely affected by supply constraints, with more focus on sales affected by unseasonably cold weather in April, but referring to the improved sales that comes with the turn of spring.
The company finished on a positive note by reaffirming its strong outlook for 2023. Lowes expect EPS of between $13.10 and $13.60 on revenue of between $97B and $99B. The report, whilst not all that bad, didn’t quite hit the same mark as Home Depot, as the company’s outdoor goods section stuttered behind regular sales trends. A reassurance of guidance suggests the company believes home development spending habits are likely to withstand inflation; set to continue throughout the rest of the year.