Lowe’s Companies Inc (NYSE:LOW) Posts Mixed Results

Lowe’s Companies Inc (NYSE:LOW) stock rose 2.03% (As on February 28, 11:20:06 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY 23. The company has reported a GAAP profit of $1bn for the quarter, down from $1.58bn in the same quarter of the prior year. Lowe’s reported a 6.2% decrease in comparable sales for the quarter, which it attributed to decreased demand in DIY projects and adverse winter weather conditions in January. It operated 1,746 stores as of 2 February, representing a slight increase of eight stores over the last 12 months.

Further, throughout the store, the company continues to introduce new and innovative products to Lowe’s like Pella’s Hidden Screen windows. LOW has also recently launched a new partnership with Sunrun, the market leader in home, solar, and battery installation.

LOW in the fourth quarter of FY 23 has reported the adjusted earnings per share of $1.77, beating the analysts’ estimates for the adjusted earnings per share of $1.69. The company had reported 17.1 percent decline in the adjusted revenue to $18.6 billion in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $18.7 billion. The prior year sales included $958 million generated in the Canadian retail business and approximately $1.4 billion related to the additional 53rd week. Gross margin was 32.4% of sales in the fourth quarter, up 7 basis points from last year. Gross margin benefited from multiple PPI initiatives as well as favorable product mix and lower transportation costs. Operating margin rate of 9.1% declined 48 basis points versus prior year.

Additionally, during the quarter, Lowe’s repurchased 1.9 million shares worth $404m, making for a total of 29.9 million shares for $6.3bn throughout the year. In addition to share repurchases, Lowe’s distributed $633m in dividends for the fourth quarter and $2.5bn for the 2023 financial year, amounting to a total return of $8.9bn to shareholders.

Looking ahead, Lowe’s acknowledged near-term macroeconomic uncertainty in its 2024 outlook, setting expectations for $84bn to $85bn in total sales. That fell short of analysts’ expectations by 1.3%, indicating a projected decline of 2.2% compared to 2023. It said it expected a decline of 2% to 3% in comparable sales, while it forecast its operating margin to be between 12.6% and 12.7%. Diluted earnings per share for 2024 were expected to be between $12 and $12.30, with capital expenditure of around $2bn.

Copyright © 2024. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.