[ad_1]
Shares of Lowe’s Companies, Inc. (NYSE: LOW ) fell more than 1% on Thursday. The stock has fallen 5% over the past three months. The company is scheduled to report its fourth quarter 2022 earnings on Wednesday, March 1st. Here’s what to expect from the upcoming earnings report:
results
Analysts project $22.7 billion in revenue for Lowe’s in Q4 2022. This compares to total sales of $21.3 billion reported in the fourth quarter of 2021 and $23.5 billion reported in the third quarter of 2022.
earnings
The consensus target for EPS in Q4 2022 is $2.21 which compares to adjusted EPS of $1.78 reported in Q4 2021. In Q3 2022, adjusted EPS increased nearly 20% year over year to $3.27.
Points to note
In a third-quarter conference call, Lowe’s maintained an optimistic outlook on the outlook for the home improvement market. However, the latest earnings report from rival Home Depot (NYSE: HD ), released this week, paints a different picture. Home Depot’s net sales in Q4 2022 did not grow much from last year and the company predicts a moderation in home improvement demand in 2023.
In the Q3 call, Lowe’s mentioned that the average age of a home in the US is more than 40 years and this is the main reason why a large part of home improvement consists of repair or maintenance projects that cannot be postponed, so it cannot be done. – discretionary spending. The retailer also said that more than 70% of Pro customers will receive more work in 2023 than in 2022. In its Q4 report, Home Depot also stated that the Pro backlog remains high compared to historical averages. So Lowe’s is likely to benefit from this trend in the fourth quarter.
In Q3, Lowe’s witnessed broad growth in Pro and DIY in the factory, rough plumbing, electrical, wood and building materials segments. Building products benefited from strength in the DIY category as lumber prices fell and customers took on previously delayed home improvement projects. In Q4, Home Depot recorded positive comps in departments such as building materials, plumbing, and outdoor gardening.
Home Depot expects flat consumer spending in 2023 and signals a possible decline in the home improvement market. It remains to be seen whether Lowe will follow in the footsteps of his teammates or whether he will reap the benefits himself.
Also read: Home Depot (HD): Three factors that are not working for this home improvement retailer
[ad_2]
Source link