©Reuters. Lowe's Q4 Earnings Preview: DIY Earnings, Online Struggles, Timber Issues, Home Improvement Bright Signs
Benzinga – Written by Surbhi Jain.
Lowe's Companies (NYSE:LOW) will report its fourth quarter results on February 27th. When the company reports before market hours, Wall Street expects him to report EPS of $1.68 and revenue of $18.45 billion.
The company is known as America's leading home improvement and appliance retailer, offering a wide range of products for DIY enthusiasts and homeowners. Its competitors are Home Depot Co., Ltd. (NYSE:HD) focuses on the same customer base. Both companies' stocks have performed well over the past year, even though Home Depot's stock price has increased more than Lowe's.
Here's what analysts are focusing on for Lowe's fourth quarter and how the company's stock is currently matching Wall Street expectations.
Lowe's investment theory
Lowe's stock faced challenges in the fourth quarter due to a weak DIY sector, struggling online sales and the impact of lumber deflation. With 75% of his revenue tied to his DIY division, potential declines in categories such as appliances and flooring pose a risk to sales.
Despite cautious consumer spending and weak industry-wide consumer electronics sales, Lowe's management is proactively addressing the challenges.
Strategic initiatives targeting value-conscious customers, appliance promotions, and low price guarantees demonstrate our commitment to competitiveness. His Resilient Pro sales, especially in small and medium-sized businesses, help boost investor confidence in the effectiveness of the company's strategy.
Overall, Lowe's remains optimistic about the long-term home improvement market driven by aging homes and non-discretionary repairs. Watching Lowe's forecast for his fiscal year 2024 will reveal the company's approach to navigating challenges and capitalizing on market dynamics.
Lowe's Analyst Focus and Consensus Rating
Fourth quarter analyst focus: Analysts will closely scrutinize Lowe's fourth-quarter results for several key factors that could impact market sentiment. The performance of the DIY department will be most important. The impact of strategic initiatives is also closely evaluated.
Additionally, analysts will be watching closely to see if there are any signs of improvement in online sales and how Lowe's weathers competitive pressures and potential margin pressure.
Insights into the resiliency of the professional sales force and the effectiveness of the company's strategy in serving professional customers are also important indicators of Lowe's overall performance and strategic position in the home improvement market.
Related: Building a better housing market: Is the worst over with January's surge in existing home sales?
Ratings and consensus estimates: The analyst consensus rating for Lowe's stock is currently a Buy, with a price target of $228.97.
Low price action: Lowe's stock was trading at $231.72, down 0.36% at the time of publication.
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