Lowe’s Q3 Earnings Report Raises Red Flags — Don't Buy the Drop Yet

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Lowe’S Companies Inc Noticias

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Stocks Analysis by ValueWalk (Dave Kovaleski) covering: Lowe’s Companies Inc. Read ValueWalk (Dave Kovaleski)'s latest article on Investing.com

) reported some solid numbers in the third quarter, beating revenue and earnings estimates and raising its sales guidance for the full year.

Also, Lowe’s reported net earnings of $1.69 billion, down roughly 4% from Q3 of 2023. Lowe’s recorded earnings per share of $2.99 in the quarter, which was lower than the $3.06 EPS from Q3 of 2023. Adjusted EPS, which excludes a $54 million pre-tax gain associated with the 2022 sale of the Canadian retail business, came in at $2.89, which topped estimates of $2.82 per share.

“Our results this quarter were modestly better-than-expected, even excluding storm-related activity, driven by high-single-digit positive comps in Pro, strong online sales and smaller-ticket outdoor DIY projects,” Marvin Ellison, Lowe’s chairman, president and CEO, said in the release. In addition, guidance improved for comparable store sales, but they will still be down 3.0% to 3.5%, compared to previous guidance that of a 3.5% to 4.0% drop. But again, the guidance was lowered in Q2 from the 2% to 3% comparable store sales decline at the start of the year.

Overall, it was a fairly sluggish quarter and outlook, given that the guidance had been lowered after Q3. Investors picked up on that, which is why we saw the selloff. It is also one of the most reliable dividend stocks you can buy, as it has increased its pay out for 61 straight years, making it a Dividend King.

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