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What Analysts Are Expecting from Lowe’s EPS in Next Four Quarters

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Oct. 18 2018, Updated 11:10 a.m. ET

Analysts’ expectations

For the next four quarters, analysts are expecting Lowe’s Companies (LOW) to post EPS (earnings per share) of $5.42, which represents growth of 7.3% from $5.05 in the corresponding four quarters of the previous year. The revenue growth and share repurchases are expected to drive the company’s EPS growth.

For the next four quarters, analysts are expecting Lowe’s revenues to rise by 3.2% to $72.79 billion. The revenue growth would likely be driven by the adoption of a new revenue recognition accounting standard, positive SSSG, and the addition of new stores. During the same period, the company’s net margins are expected to remain unchanged at 5.9%. The effects of an increase in the cost of sales and SG&A (selling, general, and administrative) expenses are expected to be offset by the lower effective tax rate.

Lowe’s has repurchased shares worth $2.5 billion in the last four quarters. The company had ~5.1 billion available under its share repurchase program at the end of the second quarter.

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Peer comparisons

During the same period, analysts expect Home Depot (HD) and Williams-Sonoma (WSM) to post EPS growth of 14.3% and 11.9%, respectively, while the EPS of Bed Bath & Beyond (BBBY) is expected to fall by 28.4%.

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