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Lowe's (LOW) Q1 Earnings Coming Up: What's in the Cards?
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Lowe's Companies, Inc. (LOW - Free Report) is likely to register a decrease in the top line from the year-ago fiscal quarter’s respective readings when it reports first-quarter fiscal 2023 earnings on May 23, before the opening bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $21,691 million, indicating an 8.3% decline from the year-earlier fiscal quarter’s reported figure.
The consensus estimate for earnings has declined a penny in the past 30 days to $3.50 a share, suggesting a 0.3% dip from the year-ago fiscal quarter’s tally.
We expect revenues to be down 8.9% from the year-ago fiscal quarter’s actuals to $21,547.3 million and adjusted earnings to rise 0.2% to $3.52 per share. Comparable sales are likely to inch down 2.5% from the prior-year fiscal period’s reported figure in the quarter under review.
In the last reported fiscal quarter, LOW delivered an earnings surprise of 3.2%. We note that this home-improvement retailer has a trailing four-quarter earnings surprise of 4.4%, on average.
Key Factors to Note
Lowe's quarterly results are likely to have been hurt by a tough operating backdrop, including inflationary pressures and currency headwinds. Any deleverage in SG&A and other expenses is expected to have been an added deterrent. Lowe’s has been investing in wage increases and bonuses. These expenses are likely to have flared up costs and weighed on margins.
On its last earnings call, management had cited that it expects a 300 basis point headwind to sales in the first quarter due to the impact of lower lumber prices.
Nonetheless, Lowe’s focus on enhancing the omnichannel retailing capabilities in store operations, website and supply chain to resonate well with customers’ demand, appears encouraging. In addition, its pro-business has been significantly contributing to the performance for a while. LOW continues benefiting from the solid execution of the Total Home strategy. All these strengths are likely to have provided some cushion to LOW’s performance in the quarter to be reported.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Lowe's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
The company is expected to register bottom-line growth when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 17 cents suggests an increase of 6.3% from the year-ago quarter.
American Eagle Outfitters’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $1.06 billion, indicating an increase of 0.8% from the figure reported in the year-ago quarter.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +0.05% and a Zacks Rank of 2. The company is expected to register a bottom-line increase when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.61 suggests a rise of 0.6% from the year-ago quarter.
Casey's top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $3.42 billion, indicating a drop of 1.2% from the figure reported in the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 9.9%, on average.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +1.97% and a Zacks Rank of 3. LULU is likely to register top-line improvement when it reports first-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for lululemon athletica’s quarterly revenues is pegged at $1.9 billion, calling for growth of 19.5% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share of $1.93 suggests a 30.4% increase from the figure reported in the year-ago quarter. LULU has a trailing four-quarter earnings surprise of 6.8%, on average.
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Lowe's (LOW) Q1 Earnings Coming Up: What's in the Cards?
Lowe's Companies, Inc. (LOW - Free Report) is likely to register a decrease in the top line from the year-ago fiscal quarter’s respective readings when it reports first-quarter fiscal 2023 earnings on May 23, before the opening bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $21,691 million, indicating an 8.3% decline from the year-earlier fiscal quarter’s reported figure.
The consensus estimate for earnings has declined a penny in the past 30 days to $3.50 a share, suggesting a 0.3% dip from the year-ago fiscal quarter’s tally.
We expect revenues to be down 8.9% from the year-ago fiscal quarter’s actuals to $21,547.3 million and adjusted earnings to rise 0.2% to $3.52 per share. Comparable sales are likely to inch down 2.5% from the prior-year fiscal period’s reported figure in the quarter under review.
In the last reported fiscal quarter, LOW delivered an earnings surprise of 3.2%. We note that this home-improvement retailer has a trailing four-quarter earnings surprise of 4.4%, on average.
Key Factors to Note
Lowe's quarterly results are likely to have been hurt by a tough operating backdrop, including inflationary pressures and currency headwinds. Any deleverage in SG&A and other expenses is expected to have been an added deterrent. Lowe’s has been investing in wage increases and bonuses. These expenses are likely to have flared up costs and weighed on margins.
On its last earnings call, management had cited that it expects a 300 basis point headwind to sales in the first quarter due to the impact of lower lumber prices.
Nonetheless, Lowe’s focus on enhancing the omnichannel retailing capabilities in store operations, website and supply chain to resonate well with customers’ demand, appears encouraging. In addition, its pro-business has been significantly contributing to the performance for a while. LOW continues benefiting from the solid execution of the Total Home strategy. All these strengths are likely to have provided some cushion to LOW’s performance in the quarter to be reported.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Lowe's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Lowe's Companies, Inc. Price and EPS Surprise
Lowe's Companies, Inc. price-eps-surprise | Lowe's Companies, Inc. Quote
Lowe's has an Earnings ESP of -1.11% and a Zacks Rank of 3.
Stocks With a Favorable Combination
Here are a few companies, which according to our model, have the right combination to beat on earnings this reporting cycle:
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +9.81% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register bottom-line growth when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 17 cents suggests an increase of 6.3% from the year-ago quarter.
American Eagle Outfitters’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $1.06 billion, indicating an increase of 0.8% from the figure reported in the year-ago quarter.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +0.05% and a Zacks Rank of 2. The company is expected to register a bottom-line increase when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.61 suggests a rise of 0.6% from the year-ago quarter.
Casey's top line is anticipated to fall year over year. The consensus mark for revenues is pegged at $3.42 billion, indicating a drop of 1.2% from the figure reported in the year-ago quarter. CASY has a trailing four-quarter earnings surprise of 9.9%, on average.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +1.97% and a Zacks Rank of 3. LULU is likely to register top-line improvement when it reports first-quarter fiscal 2023 numbers.
The Zacks Consensus Estimate for lululemon athletica’s quarterly revenues is pegged at $1.9 billion, calling for growth of 19.5% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share of $1.93 suggests a 30.4% increase from the figure reported in the year-ago quarter. LULU has a trailing four-quarter earnings surprise of 6.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.