Lowe’s Companies, Inc. (LOW - Free Report) reported third-quarter fiscal 2018 results, wherein both the top and bottom lines came ahead of their respective Zacks Consensus Estimate. Further, sales improved year over year. However, the company posted lower-than-expected comparable store sales. The company is also planning to exit certain non-core businesses. Moreover, margin came under pressure during the reported quarter. Management also trimmed fiscal 2018 outlook.
Markedly, shares of this Zacks Rank #3 (Hold) company are down almost 7% during the pre-market trading session. In the past three months, the stock has slid 8.4% compared with the industry’s decline of 12.1%.
Incidentally, Lowe’s incurred non-cash pre-tax charges of nearly $280 million related to its strategic review of shutting all Orchard Supply Hardware locations and long-lived asset impairments. It also includes severance obligations related to the company’s intention of closing underperforming stores in the United States, Canada, Mexico and inventory write-down related to the intention to exit non-core activities during the third quarter.
The company had earlier stated that it will close 99 Orchard Supply Hardware stores by year-end. It also informed that it will shutter 20 Lowe's stores in the United States and 31 in Canada.
Q3 Performance
This home improvement retailer’s adjusted earnings came in at $1.04 per share, which surpassed the Zacks Consensus Estimate of 97 cents. However, the bottom line decreased approximately by 1% from $1.05 in the year-ago quarter.
Net sales of $17.4 billion beat the Zacks Consensus Estimate of $17.3 billion. Sales included the impact from the new revenue recognition accounting standard of ASU No. 2014-09, which was adopted in the first quarter of fiscal 2018. Notably, sales in the third quarter advanced 3.8% year over year. Prior to that, the company reported sales growth of 7.1% and 3% in the second and first quarter, respectively.
Lowe's Companies, Inc. Price, Consensus and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Lowe’s Companies, Inc. (LOW - Free Report) reported third-quarter fiscal 2018 results, wherein both the top and bottom lines came ahead of their respective Zacks Consensus Estimate. Further, sales improved year over year. However, the company posted lower-than-expected comparable store sales. The company is also planning to exit certain non-core businesses. Moreover, margin came under pressure during the reported quarter. Management also trimmed fiscal 2018 outlook.
Markedly, shares of this Zacks Rank #3 (Hold) company are down almost 7% during the pre-market trading session. In the past three months, the stock has slid 8.4% compared with the industry’s decline of 12.1%.
Incidentally, Lowe’s incurred non-cash pre-tax charges of nearly $280 million related to its strategic review of shutting all Orchard Supply Hardware locations and long-lived asset impairments. It also includes severance obligations related to the company’s intention of closing underperforming stores in the United States, Canada, Mexico and inventory write-down related to the intention to exit non-core activities during the third quarter.
The company had earlier stated that it will close 99 Orchard Supply Hardware stores by year-end. It also informed that it will shutter 20 Lowe's stores in the United States and 31 in Canada.
Q3 Performance
This home improvement retailer’s adjusted earnings came in at $1.04 per share, which surpassed the Zacks Consensus Estimate of 97 cents. However, the bottom line decreased approximately by 1% from $1.05 in the year-ago quarter.
Net sales of $17.4 billion beat the Zacks Consensus Estimate of $17.3 billion. Sales included the impact from the new revenue recognition accounting standard of ASU No. 2014-09, which was adopted in the first quarter of fiscal 2018. Notably, sales in the third quarter advanced 3.8% year over year. Prior to that, the company reported sales growth of 7.1% and 3% in the second and first quarter, respectively.
Lowe's Companies, Inc. Price, Consensus and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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