Inside Lowe’s Analyst Expectations for Revenue over the Next Four Quarters

For the next four quarters, analysts are expecting Lowe’s to post revenue of $68.9 billion—a growth of 3.4% over its ~$66.6 billion from the last four quarters.

Rajiv  Nanjapla - Author

Dec. 4 2020, Updated 10:50 a.m. ET


LOW’s revenue estimates

For the next four quarters, analysts are expecting Lowe’s Companies (LOW) to post revenue of $68.9 billion, which would represent a growth of 3.4% over its ~$66.6 billion over the past four quarters.

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LOW’s revenue growth

For 2017, the company’s management expects to post revenue growth of 5%, with SSSG (same-store sales growth) to come in at 3.5%. Its RONA acquisition is expected to contribute 2% to sales growth, while the addition of 35 new restaurants is expected to contribute 1%. However, the 52 weeks in 2017, as compared to 53 weeks in 2016, are expected to offset 1.5% in sales growth.

Meanwhile, Lowe’s has expanded its portfolio of brands by adding SharkBit, which provides plumbing solutions, and A.O. Smith, which manufactures residential and commercial water heaters. For DIY (do-it-for-yourself) customers, the company has been offering free delivery services at MyLowe’s platform. These initiatives, along with the enhancement of online experiences, are expected to drive Lowe’s SSSG over the next four quarters.

Notably, Lowe’s entered into a definitive agreement to acquire Maintenance Supply Headquarters earlier in May. Along with the acquisition of Central Wholesalers in November 2016, this new agreement is expected to expand Lowe’s capabilities in serving the multifamily housing industry. The combined multifamily business is expected to generate $400 million in annual sales.

Peer comparisons

During the same period, Home Depot (HD), Williams-Sonoma (WSM), and Bed Bath & Beyond (BBBY) are expected to post revenue growth of 4.9%, 3.1%, and 3.4%, respectively.

Now let’s take a closer look at Lowe’s 1Q17 margins.


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