Lowe’s Q2 Earnings Report Miss & Analysis

Lowe’s Q2 earnings report (NYSE: LOW) was released today, and the company missed on both earnings and revenue expectations. Analysts expected Lowe’s Companies to have adjusted EPS of $1.61 on revenue of $19.53 billion. Furthermore, analysts’ consensus for same-store sales growth was 4.3%. The company reported the following figures in its Q2 earnings report:

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  • Net Income of $1.4 billion (or $1.68 per share)
  • Adjusted EPS of $1.57.
  • Revenue of $19.50 billion.
  • Same-store sales growth of 4.5%.

CEO Statement on Lowe’s Q2 Earnings

In addition, Lowe’s Q2 earnings report offered lowered full-year guidance for investors. The company expects full-year earnings in the range of $4.20-4.30 per share. Consensus estimates from analysts of Lowe’s full-year earnings are $4.62 per share. On the earnings conference call with analysts, the CEO acknowledged Lowe’s underperformance for this quarter:

While our results were below our expectations in the first half of this year, the team remains focused on making the necessary investments to improve the customer experience and drive sales. We are pleased with our improved comparable sales performance relative to last quarter, and the strong momentum we built throughout the second quarter culminating in a 7.9% comparable sales increase for the month of July. Robert Niblock, CEO of Lowe’s Companies

Stock Reaction to ER

Yesterday, Lowe’s stock traded at $75.69 per share at market close. This morning, LOW opened around $72.30 per share. In intraday trading, the company’s stock trended lower. Currently, shares of Lowe’s Companies, Inc. are trading at $71.25 per share. Here is a live, interactive chart of Lowe’s stock with a tab to compare it to the S&P 500 Index (NYSEARCA: SPY):

LOW Stock Following This Quarter’s Earnings

Lowe’s earnings report this quarter is very mixed. Between lower guidance, missed financial targets, and an overall lack of positive catalysts, traders and investors alike have a slightly bearish outlook. The market appears to be accurately pricing in Lowe’s Q2 earnings report. Generally speaking, there are more exciting long/short opportunities in this market.

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