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How Lowe's Earnings Stack Up To Home Depot

How Lowe's Earnings Stack Up To Home Depot
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Do-it-yourself home improvement retailer Lowe's Companies, Inc. (NYSE: LOW) reported its first-quarter results Wednesday morning, sending the stock higher by more than 9 percent at the time of publication. The report compares favorably to rival Home Depot Inc (NYSE: HD), which was trading down slightly Wednesday morning.

The Top, Bottom Lines

Lowe's said it earned $1.19 per share in the first quarter on revenue of $17.4 billion. The Street was expecting the company to earn $1.25 per share on revenue of $17.63 billion.

Home Depot also reported a mixed first quarter print, as it earned $2.08 per share on revenue of $24.947 billion against expectations of $2.06 per share and $25.22 billion.


Lowe's said its sales for the first quarter rose 3 percent from a year ago, aided by a comparable sales increase of 0.6 percent for the entire company and a 0.5-percent increase from the U.S. business.

Home Depot sales in the quarter rose 4.4 percent from a year ago, while comparable sales were positive 4.2 percent for the entire company and positive 3.9 percent for the U.S. business.


Lowe's guided its full year 2018 EPS to a range of $5.40 to $5.50 versus a Street estimate of $5.48. Comparable sales are expected to rise 3.5 percent and total sales around 5 percent.

Home Depot guided its 2018 sales to grow by around 6.7 percent and comps to be up around 5 percent. The company also expects EPS growth of 28 percent from 2017 levels to $9.31.

FBB On Lowe's

Lowe's quarterly print makes it clear there are both "risks and opportunities" in the stock, FBB Capital Partners' Mike Bailey said in a research report. A longer winter was responsible for "depressed demand" in outdoor products, but at the same time the company's status as the "second-best" do-it-yourself home improvement retailer remains unchanged, the analyst said.

new CEO could help reverse a "string of disappointing sales and earnings," Bailey said. 

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Public domain photo via Wikimedia. 

Latest Ratings for HD

Nov 2018Bank of AmericaDowngradesBuyNeutral
Nov 2018Credit SuisseMaintainsNeutralNeutral
Nov 2018Deutsche BankMaintainsBuyBuy

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