Lowe's (LOW) Reports Q3: Everything You Need To Know Ahead Of Earnings

Radek Strnad /
2023/11/20 2:02 am EST

Home improvement retailer Lowe’s (NYSE:LOW) will be announcing earnings results tomorrow before market hours. Here's what investors should know.

Last quarter Lowe's reported revenues of $24.96 billion, down 9.2% year on year, missing analyst expectations by 0.1%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.

Is Lowe's buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Lowe's's revenue to decline 11.2% year on year to $20.86 billion, a deceleration on the 2.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.03 per share.

Lowe's Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing fourteen downward revisions over the last thirty days.The company missed Wall St's revenue estimates four times over the last two years.

Looking at Lowe's's peers in the home furnishing and improvement retail segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Home Depot's revenues decreased 3% year on year, beating analyst estimates by 0.3% and Floor And Decor reported revenues up 0.9% year on year, missing analyst estimates by 1.4%. Home Depot traded flat on the results, Floor And Decor was down 10.5%.

Read our full analysis of Home Depot's results here and Floor And Decor's results here.

There has been positive sentiment among investors in the home furnishing and improvement retail segment, with the stocks up on average 8% over the last month. Lowe's is up 8.1% during the same time, and is heading into the earnings with analyst price target of $234.3, compared to share price of $203.7.

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The author has no position in any of the stocks mentioned.