Lowe’s Earnings Are On Tap Amid Same-Store Sales Skid

Lowe’s Earnings Are On Tap Amid Same-Store Sales Skid

S&P 500 component Lowe’s (LOW) reports first-quarter earnings and revenue early Tuesday as analysts expect another same-store sales decrease following results from rival Home Depot (HD) last week. LOW stock gained ground Monday.




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Analysts forecast Lowe’s first-quarter earnings to drop 20% to $2.95 per share with sales totaling $21.14 billion, down more than 5% compared to last year, according to FactSet.

The consensus among analysts also has same-store sales decreasing 5.5%. That would be the sixth consecutive quarter with a same-store sales decline, dating back to Q3 2022 — just like Home Depot.

At the end of February, Lowe’s management guided full-year EPS of $12-$12.30 with revenue of $84-$85 billion. Lowe’s expected same-store sales to decline 2%-3% in 2024.

Lowe’s stock advanced 0.4% during premarket trade on Monday. The S&P 500 stock edged down 0.5% to 231.11 Friday, falling 1.7% on the week. However, LOW shares are up more than 1.3% in May.

Last week, Lowe’s rival Home Depot, also a S&P 500 component, announced better-than expected first-quarter earnings and reaffirmed 2024 guidance.

Home Depot’s Q1 earnings fell 5% to $3.63 per share while sales totaled $36.42 billion, down more than 2% compared to Q1 2023. The big box retailer also continues to predict 2024 revenue and EPS to grow around 1% while same-store sales for 2024 are forecast to decrease 1%.

S&P 500: Lowe’s Stock

LOW shares are in a consolidation with a 262.49 buy point, but is trading modestly below its 50-day line, according to MarketSurge analysis.

Lowe’s stock approached all-time highs on March 22, hitting 262.49. Since then, the S&P 500 stock has dropped 12%, with a recent low of 224.68 on April 25. For 2024, Lowe’s stock is up around 4%.

Meanwhile, Home Depot stock hit a 2024 high of 396.87 on March 21 and has also fallen since then, finding support at its 200-day moving average. HD stock is below its 50-day line.

Lowe’s stock has a 45 Composite Rating out of a best-possible 99. The S&P 500 stock also has a 54 Relative Strength Rating and a 76 EPS Rating.

Please follow Kit Norton on X @KitNorton for more coverage.

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