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Lowe’s Companies, Inc. (LOW - Free Report) came up with fourth-quarter fiscal 2023 results, wherein the top and bottom lines beat the respective Zacks Consensus Estimate. However, the company experienced a year-over-year decline in both revenues and earnings. This can be attributed to a reduction in Do-It-Yourself (DIY) spending observed during the period.
Q4 in Detail
The home improvement retailer posted quarterly earnings of $1.77 per share, which came ahead of the Zacks Consensus Estimate of $1.68. However, the figure marked a significant decline from the adjusted earnings of $2.28 per share reported in the same period last year.
While net sales of $18,602 million beat the Zacks Consensus Estimate of $18,338 million, the same fell 17.1% year over year. The previous year's quarterly sales figures benefited from approximately $1.4 billion from the additional 53rd week and $958 million generated from Canadian retail operations.
Comparable sales for the quarter declined 6.2%, primarily due to softness in demand from DIY customers and adverse winter weather conditions in January. Conversely, comparable sales from Pro customers remained unchanged during the quarter. We had expected a comparable sales decline of 7.2%.
Gross profit declined 17% year over year to $6,026 million. However, the gross margin increased 10 basis points to 32.4%. We had expected the gross margin to remain flat year over year.
Lowe's Companies, Inc. Price, Consensus and EPS Surprise
Lowe’s ended the quarter with cash and cash equivalents of $921 million, long-term debt (excluding current maturities) of $35,384 million and shareholders’ deficit of $15,050 million.
The company generated cash flow from operations of $8,140 million in fiscal 2023. During the quarter, Lowe’s executed a buyback of around 1.9 million shares, amounting to $404 million, while for the entire fiscal year, it repurchased 29.9 million shares, totaling $6.3 billion.
FY2024 Outlook
In light of current macroeconomic uncertainties, Lowe’s unveiled its fiscal 2024 view. It anticipates total sales to range from $84 billion to $85 billion compared to the $86.4 billion recorded in fiscal 2023. The company expects a modest decline of 2% to 3% in comparable sales for the fiscal year 2024.
Furthermore, Lowe’s projects earnings per share for fiscal 2024 in the range of $12.00-$12.30. Additionally, the operating margin is projected to fall within the range of 12.6%-12.7%. Management expects to incur capital expenditures of roughly $2 billion in fiscal 2024.
Stock Price Performance
This Zacks Rank #3 (Hold) stock has increased 15.6% in the past three months compared with the industry’s growth of 19%.
Don’t Miss These Solid Bets
Casey's General Stores (CASY - Free Report) , the third largest convenience retailer and fifth largest pizza chain in the United States, currently carries a Zacks Rank #2 (Buy). CASY has a trailing four-quarter earnings surprise of 17.8%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Casey's current financial-year earnings suggests growth of around 11.1% from the year-ago reported numbers.
Target Corporation (TGT - Free Report) operates as a general merchandise retailer in the United States. It currently has a Zacks Rank #2. TGT has a trailing four-quarter earnings surprise of 30.8%, on average.
The Zacks Consensus Estimate for Target’s current financial-year earnings suggests growth of 38.9% from the year-ago reported figure.
Costco Wholesale Corporation (COST - Free Report) , which operates membership warehouses, currently carries a Zacks Rank #2. COST has a trailing four-quarter earnings surprise of 2.6%, on average.
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings suggests growth of around 4.7% and 6.5%, respectively, from the year-ago reported numbers.
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Lowe's (LOW) Q4 Earnings Beat Estimates, Sales Decline Y/Y
Lowe’s Companies, Inc. (LOW - Free Report) came up with fourth-quarter fiscal 2023 results, wherein the top and bottom lines beat the respective Zacks Consensus Estimate. However, the company experienced a year-over-year decline in both revenues and earnings. This can be attributed to a reduction in Do-It-Yourself (DIY) spending observed during the period.
Q4 in Detail
The home improvement retailer posted quarterly earnings of $1.77 per share, which came ahead of the Zacks Consensus Estimate of $1.68. However, the figure marked a significant decline from the adjusted earnings of $2.28 per share reported in the same period last year.
While net sales of $18,602 million beat the Zacks Consensus Estimate of $18,338 million, the same fell 17.1% year over year. The previous year's quarterly sales figures benefited from approximately $1.4 billion from the additional 53rd week and $958 million generated from Canadian retail operations.
Comparable sales for the quarter declined 6.2%, primarily due to softness in demand from DIY customers and adverse winter weather conditions in January. Conversely, comparable sales from Pro customers remained unchanged during the quarter. We had expected a comparable sales decline of 7.2%.
Gross profit declined 17% year over year to $6,026 million. However, the gross margin increased 10 basis points to 32.4%. We had expected the gross margin to remain flat year over year.
Lowe's Companies, Inc. Price, Consensus and EPS Surprise
Lowe's Companies, Inc. price-consensus-eps-surprise-chart | Lowe's Companies, Inc. Quote
Other Financial Aspects
Lowe’s ended the quarter with cash and cash equivalents of $921 million, long-term debt (excluding current maturities) of $35,384 million and shareholders’ deficit of $15,050 million.
The company generated cash flow from operations of $8,140 million in fiscal 2023. During the quarter, Lowe’s executed a buyback of around 1.9 million shares, amounting to $404 million, while for the entire fiscal year, it repurchased 29.9 million shares, totaling $6.3 billion.
FY2024 Outlook
In light of current macroeconomic uncertainties, Lowe’s unveiled its fiscal 2024 view. It anticipates total sales to range from $84 billion to $85 billion compared to the $86.4 billion recorded in fiscal 2023. The company expects a modest decline of 2% to 3% in comparable sales for the fiscal year 2024.
Furthermore, Lowe’s projects earnings per share for fiscal 2024 in the range of $12.00-$12.30. Additionally, the operating margin is projected to fall within the range of 12.6%-12.7%. Management expects to incur capital expenditures of roughly $2 billion in fiscal 2024.
Stock Price Performance
This Zacks Rank #3 (Hold) stock has increased 15.6% in the past three months compared with the industry’s growth of 19%.
Don’t Miss These Solid Bets
Casey's General Stores (CASY - Free Report) , the third largest convenience retailer and fifth largest pizza chain in the United States, currently carries a Zacks Rank #2 (Buy). CASY has a trailing four-quarter earnings surprise of 17.8%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Casey's current financial-year earnings suggests growth of around 11.1% from the year-ago reported numbers.
Target Corporation (TGT - Free Report) operates as a general merchandise retailer in the United States. It currently has a Zacks Rank #2. TGT has a trailing four-quarter earnings surprise of 30.8%, on average.
The Zacks Consensus Estimate for Target’s current financial-year earnings suggests growth of 38.9% from the year-ago reported figure.
Costco Wholesale Corporation (COST - Free Report) , which operates membership warehouses, currently carries a Zacks Rank #2. COST has a trailing four-quarter earnings surprise of 2.6%, on average.
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings suggests growth of around 4.7% and 6.5%, respectively, from the year-ago reported numbers.