Lowe’s Companies Inc. (LOW – Analyst Report), one of the largest home improvement retailers, came out with first-quarter fiscal 2015 results, wherein earnings of 70 cents a share missed the Zacks Consensus Estimate of 74 cents but jumped 14.8% year over year.
Management now envisions earnings of approximately $3.29 per share for fiscal 2015. The current Zacks Consensus Estimate for the fiscal year is $3.32, which could witness a downward revision in the coming days.
Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2015 and 2016 has been portraying an uptrend in the last 30 days. In the trailing four quarters (including the quarter under review), the company has outperformed the Zacks Consensus Estimate by an average of 0.7%.
Revenues: Lowe’s generated total revenue of $14,129 million that increased 5.4% year over year, but fell short of the Zacks Consensus Estimate of $14,227 million. Comparable sales jumped 5.2% during the quarter.
Management now projects total sales growth of 4.5% to 5% and comparable sales growth of 4% to 4.5% for fiscal 2015.
Key Events: Lowe’s, which operated 1,843 home improvement and hardware outlets as of May 1, bought back $1 billion of shares under its buyback program and paid $222 million in dividends in the quarter under review. The company now plans to open 15 to 20 home improvement and hardware outlets.
Zacks Rank: Currently, Lowe’s carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.
Stock Movement: Lowe’s shares are down nearly 5.6% during pre-market trading hours following the earnings release. Clearly, a negative sentiment is palpable among investors following the company’s lower-than-expected results.
