Home improvement retailer Lowe’s (LOW) reported its fourth-quarter results Wednesday morning following mixed results from rivals HomeDepot (HD) last week. Lowe’s stock retreated early Wednesday after inching up in premarket trading.
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Lowe’s earnings accelerated for the third quarter in a row, jumping 28% to $2.28 per share as revenue rose 5.2% to $22.445 billion. The adjusted earnings results excluded pretax transaction costs associated with selling its Canadian retail business, after offloading it to private-equity firm Sycamore Partners for $400 million in cash in November.
The FactSet consensus projected a 24% earnings increase to $2.21 per share on 6.4% revenue growth to $22.7 billion.
Lowe’s comparable sales fell 1.5% for the fourth quarter while US comparable sales dipped 0.7%. FactSet projected flat growth year-over-year.
For fiscal 2023, Lowe’s forecasts earnings to range from $13.60 to $14 per share on $88 billion to $90 billion in total sales. For full-year 2022, Lowe’s earnings were $13.76 per share on $97 billion in sales. Management expects slower foot traffic to continue throughout the year. The home retailer sees comparable sales being flat to down 2% year-over-year
Lowe’s Stock
Lowe’s stock fell 3.5% to 198.3 early Wednesday after nudging up 0.5% in up-and-down premarket trading following the earnings results. Shares have been consolidating following an early February breakout. LOW stock fell more than 8% from the buy point after the breakout, triggering the automatic sell rule.
Lowe’s stock is down about 1% so far this year.
You can follow Harrison Miller for more news and stock updates on Twitter @IBD_Harrison.
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