Will Lowe’s Outperform Analysts’ Earnings Estimates?


May. 17 2019, Updated 11:07 a.m. ET

First-quarter estimates

Analysts expect Lowe’s Companies (LOW) to post an adjusted EPS of $1.33 in the first quarter—a rise of 11.8% from $1.19 in the first quarter of 2018. The revenue growth, expanded EBIT margin, and share repurchases will likely drive the company’s EPS during the quarter. However, some of the increase in Lowe’s EPS is expected to be offset by higher interest expenses.

Analysts expect Lowe’s EBIT margin to improve from 8.4% in the first quarter of 2018 to 8.8%. A fall in the company’s selling, general, and administrative expenses and sales leverage from positive SSSG (same-store sales growth) could drive the company’s EBIT margin during the quarter. Increased labor productivity and lower advertising expenses will likely lower the company’s SG&A expenses.

From the beginning of the second quarter of 2018 to the end of the fourth quarter of 2018, Lowe’s repurchased 22.9 million shares for $2.29 billion. As of February 1, the company still had $13.9 billion available under its share repurchase program.

Article continues below advertisement

Peer comparisons

During the same quarter, analysts expect Home Depot (HD) and Williams-Sonoma (WSM) to post EPS growth of 5.1% and 3.7%, respectively. Bed Bath & Beyond’s (BBBY) revenues are expected to fall 76.6%.


For 2019, Lowe’s management expects its adjusted EPS to be $6.0–$6.10. For the same period, analysts expect Lowe’s to post an adjusted EPS of $6.05—a rise of 18.7% from $5.10 in 2018.


More From Market Realist

  • A "now hiring" sign outside a Popeyes restaurant, one sign that employers are having trouble finding employees willing to work for current wages.
    Why Employers Are Struggling To Fill Jobs Despite High Unemployment
  • Beyond Meat patties in a grocery cart
    Buying the Dip on Beyond Meat (BYND) Stock Is a Risky Move
  • People looking at data on a laptop
    Is Driven Brands (DRVN) a Good Stock to Buy? A Look at the Year Ahead
  • A Moscow Mule drink made with Reed's
    Is Reed's (REED) a Good Stock to Buy? A Look at the Year Ahead
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.