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:

  • 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 Rating Following Lowe's Q2 Earnings

Due to the mixed earnings report this quarter, The Stock Trader Blog is maintaining a neutral outlook on Lowe's Companies, Inc. We believe the market has appropriately priced in Lowe's Q2 earnings report. Therefore, we are not adding LOW stock to the Bullish List or the Bearish List. Indeed, there are better long and short opportunities in the current market.

Eric Bruin

Eric Bruin

Founder. Kelley School of Business '17. Write about stocks and business news. Contact for business inquiries or to write articles for The Stock Trader Blog.

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