Lowe's Trails Home Depot in Remodeling Boom Amid Profit Miss

Judith Bessette
Agosto 24, 2017

Lowe's Cos. [s:LOW] on Wednesday reported earnings that missed expectations and guided lower, sending the stock down almost 6% in midday trading. Comparable-store sales are a key gauge of a retailer's health because the remove the volatility of stores recently opened or closed.

That performance gap continued in the second quarter, and contributed to a reduced full-year earnings forecast. Home Depot has been consistently outperforming Lowe's, in large part because of its strong pro business. Operating income was $2.38 billion in the quarter versus $2.05 billion in the year-before period.

Same-store sales: 4.3 percent growth, according to Thomson Reuters. Excluding the gain, adjusted earnings per share increased 14.6 percent to $1.57 from $1.37, prior year.

Shaftesbury (LON:SHB) Analyst Target Prices
It has outperformed by 64.22% the S&P500. 29/06/2017 - Persimmon had its "Neutral" rating reiterated by analysts at Citigroup. The stock's market capitalization is 2.77B, it has a 52-week low of 861.00 and a 52-week high of 1013.00.

The company sent $1.55 billion of cash back to investors through $1.25 billion of stock buybacks and $300 million of dividend payments. Third, second-quarter consensus was a tad high, calling for sales of $19.6 billion and EPS of $1.63, versus our model that implied sales of $18.9 billion and EPS of $1.55, lower than actual results (sales of $19.5 billion and EPS of $1.57).

Lowe's CEO, chairman and president Robert A. Niblock says that despite the increases, the results were not what the company had projected for the first six months of the fiscal year. This includes amplifying our consumer messaging and incremental customer-facing hours in our stores which will put pressure on our operating margin. That decision sets up a sharp contrast with Home Depot, which last week raised its comps target to 5.5% from 4.6%. This shift will result in earnings coming in at between $4.20 per share and $4.30 per share in 2017, the company estimates, down slightly from the $4.30-per-share target management issued in late May.

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