Market Overview

Earnings Preview: Lowe's Companies' EPS, Revenue Expected to Rise

Lowe's Companies (NYSE: LOW) announces its next round of earnings this Monday, November 14, 2011. Get prepared with Benzinga's ultimate preview for Lowe's Companies' third quarter earnings.

Earnings and Revenue:

Analysts are predicting an EPS reading of 33 cents/share and revenues of $11.7 billion. Lowe's Companies' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 31 cents/share on revenues of $11.59 billion. We'll have to wait for Monday to see if the company reports higher EPS and a slight increase in revenue from the year-ago quarter, as analysts are expecting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 Q1 Q4 Q3
EPS Estimate $0.67 $0.36 $0.18 $0.30
EPS Actual $0.68 $0.34 $0.21 $0.31

(Estimates Source: Zacks)

Stock Performance:

Shares of Lowe's Companies were trading at $22.77 as of November 8, 2011. Shares are down 7.3% year to date. For a full 12 months, the return has declined by 5.9%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

  • Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts is a Moderate Buy. Over the past three months this rating's strength has declined slightly.

Competitors:

Looking for a sympathy stock to trade or interested in the performance of other companies in the same sector? Take a look at some of Lowe's Companies' peers.

  • Builders FirstSource (NASDAQ: BLDR): Hold with a -$0.07 recent quarter EPS
  • Hudbay Minerals (NYSE: HBM): Hold with a -$0.05 recent quarter EPS
  • Home Depot (NYSE: HD): Moderate Buy with a $0.86 recent quarter EPS
  • Lumber Liquidators (NYSE: LL): Hold with a $0.24 recent quarter EPS

The building products-retail/wholesale company's industry has seen price/earnings growth of 1% during the current fiscal year.

Finally, a description of the company's main areas of operation: Lowe's Companies is a home improvement retailer offering products to homeowners, renters, and commercial business customers.

Take Action:

Now that you have reviewed all the numbers, be ready to move if the upcoming Lowe's Companies earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.

  • To see up-to-date news on Lowe's Companies, click here
  • To see other trading ideas, click here
  • To see other company earnings recaps, click here

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