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Can Lowe's (LOW) Retain Its Earnings Beat Streak in Q4?
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Lowe's Companies, Inc. (LOW - Free Report) is likely to register a top and bottom-line increase when it reports fourth-quarter fiscal 2021 earnings on Feb 23, before the opening bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $20,823 million, indicating a rise of 2.5% from the comparable quarter’s tally in the year-earlier fiscal.
The Zacks Consensus Estimate for earnings in the fiscal fourth quarter has been stable in the past 30 days at $1.71 a share, suggesting 28.6% growth from the year-ago quarter’s tally. In the last reported quarter, LOW delivered the 10th straight earnings beat and the seventh consecutive sales surprise. We note that the home-improvement retailer has a trailing four-quarter earnings surprise of 14.3%, on average.
For fiscal 2021, the Zacks Consensus Estimate for revenues is pegged at $95.6 billion, implying a 6.7% increase from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for earnings has been revised a penny up in the past seven days to $11.96 per share, hinting at an improvement of roughly 35% from the last fiscal year’s reported figure.
Key Factors to Note
We expect Lowe's fourth-quarter results to benefit from the solid execution of its Total Home strategy, which focuses on boosting productivity and enriching the integrated omni-channel shopping experience. Also, a strong digital base has been aiding Lowe’s performance for a while now. Management is focused on enhancing the omni-channel retailing capabilities in store operations, website and supply chain to resonate well with customers’ demand.
In addition, Pro business continues to significantly contribute to Lowe's performance. Management is quite focused on enhancing the Pro offering across LOW’s stores and online with improved service levels, deeper inventory quantities, intuitive store layout and an addition of Pro-focused brands. All these strengths are most likely to have driven LOW’s performance in the to-be-reported quarter.
On its last earnings call, management projected revenues of nearly $95 billion for the current fiscal year and comparable sales growth of nearly 33% on a two-year stacked basis. LOW had anticipated the gross margin rate to improve slightly year over year and an operating margin of 12.4% for fiscal 2021.
On the flip side, higher expenses associated with the pandemic and the ongoing supply-chain disruptions might have been concerns.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Lowe's this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Lowe's currently has a Zacks Rank #2 and an Earnings ESP of +6.81%.
More Stocks With Favorable Combination
Here are a few other companies worth considering from the same sector as our model shows that these also have the right combination of elements to beat on earnings this season:
Home Depot (HD - Free Report) currently has an Earnings ESP of +6.42% and a Zacks Rank #3. HD is anticipated to register a top-line increase when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for HD’s quarterly revenues is pegged at $34.6 billion, indicating a rise of 7.3% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Home Depot’s bottom line has been stable in the past 30 days at $3.20 per share. However, the consensus estimate for earnings suggests an improvement of 16.8% from the year-ago quarter’s reported figure. HD delivered an earnings beat of 12.1%, on average, in the trailing four quarters.
Foot Locker (FL - Free Report) currently has an Earnings ESP of +7.73% and a Zacks Rank #3. FL is likely to register a bottom-line decrease when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.46 suggests a fall of 5.8% from the year-ago quarter’s reported figure.
Foot Locker's top line is expected to have risen from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for quarterly revenues is pegged at $2,352 million, indicating an improvement of 7.3% from the figure reported in the prior-year quarter. FL has a trailing four-quarter earnings surprise of 58.1%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +1.27% and a Zacks Rank of 3. COST is likely to register a bottom-line increase when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.67 suggests an increase of 24.8% from the year-ago quarter’s reported number.
Costco’s top line is expected to have improved from the prior-year quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $51.1 billion, suggesting growth of 14% from the prior-year quarter’s reported figure. COST has a trailing four-quarter earnings surprise of 8.3%, on average.
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Can Lowe's (LOW) Retain Its Earnings Beat Streak in Q4?
Lowe's Companies, Inc. (LOW - Free Report) is likely to register a top and bottom-line increase when it reports fourth-quarter fiscal 2021 earnings on Feb 23, before the opening bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $20,823 million, indicating a rise of 2.5% from the comparable quarter’s tally in the year-earlier fiscal.
The Zacks Consensus Estimate for earnings in the fiscal fourth quarter has been stable in the past 30 days at $1.71 a share, suggesting 28.6% growth from the year-ago quarter’s tally. In the last reported quarter, LOW delivered the 10th straight earnings beat and the seventh consecutive sales surprise. We note that the home-improvement retailer has a trailing four-quarter earnings surprise of 14.3%, on average.
For fiscal 2021, the Zacks Consensus Estimate for revenues is pegged at $95.6 billion, implying a 6.7% increase from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for earnings has been revised a penny up in the past seven days to $11.96 per share, hinting at an improvement of roughly 35% from the last fiscal year’s reported figure.
Key Factors to Note
We expect Lowe's fourth-quarter results to benefit from the solid execution of its Total Home strategy, which focuses on boosting productivity and enriching the integrated omni-channel shopping experience. Also, a strong digital base has been aiding Lowe’s performance for a while now. Management is focused on enhancing the omni-channel retailing capabilities in store operations, website and supply chain to resonate well with customers’ demand.
In addition, Pro business continues to significantly contribute to Lowe's performance. Management is quite focused on enhancing the Pro offering across LOW’s stores and online with improved service levels, deeper inventory quantities, intuitive store layout and an addition of Pro-focused brands. All these strengths are most likely to have driven LOW’s performance in the to-be-reported quarter.
On its last earnings call, management projected revenues of nearly $95 billion for the current fiscal year and comparable sales growth of nearly 33% on a two-year stacked basis. LOW had anticipated the gross margin rate to improve slightly year over year and an operating margin of 12.4% for fiscal 2021.
On the flip side, higher expenses associated with the pandemic and the ongoing supply-chain disruptions might have been concerns.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Lowe's this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Lowe's currently has a Zacks Rank #2 and an Earnings ESP of +6.81%.
More Stocks With Favorable Combination
Here are a few other companies worth considering from the same sector as our model shows that these also have the right combination of elements to beat on earnings this season:
Home Depot (HD - Free Report) currently has an Earnings ESP of +6.42% and a Zacks Rank #3. HD is anticipated to register a top-line increase when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for HD’s quarterly revenues is pegged at $34.6 billion, indicating a rise of 7.3% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Home Depot’s bottom line has been stable in the past 30 days at $3.20 per share. However, the consensus estimate for earnings suggests an improvement of 16.8% from the year-ago quarter’s reported figure. HD delivered an earnings beat of 12.1%, on average, in the trailing four quarters.
Foot Locker (FL - Free Report) currently has an Earnings ESP of +7.73% and a Zacks Rank #3. FL is likely to register a bottom-line decrease when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.46 suggests a fall of 5.8% from the year-ago quarter’s reported figure.
Foot Locker's top line is expected to have risen from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for quarterly revenues is pegged at $2,352 million, indicating an improvement of 7.3% from the figure reported in the prior-year quarter. FL has a trailing four-quarter earnings surprise of 58.1%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +1.27% and a Zacks Rank of 3. COST is likely to register a bottom-line increase when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.67 suggests an increase of 24.8% from the year-ago quarter’s reported number.
Costco’s top line is expected to have improved from the prior-year quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $51.1 billion, suggesting growth of 14% from the prior-year quarter’s reported figure. COST has a trailing four-quarter earnings surprise of 8.3%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.