What to Expect From Lowe’s Earnings

By Chris Lange Updated Jan 13, 7:56AM EST · Published May 17, 12:05PM EDT

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What to Expect From Lowe’s Earnings — © Thinkstock

Lowe’s Companies Inc. (NYSE: LOW) is scheduled to report its fiscal second-quarter financial results before the markets open on Wednesday. The consensus estimates from Thomson Reuters call for $0.85 in earnings per share (EPS) on $14.87 billion in revenue. In the same period from last year, the specialty retailer posted EPS of $0.70 and $14.13 billion in revenue.

Lowe’s is one of numerous hardware stores, lumber yards and garden centers included in the building material and garden equipment subsector. The industry was worth an estimated $332.1 billion in 2015, up by 4.2% from the year before. Hardware-related sales at the home-improvement giant, however, are a small share of its total market and total sales. In addition to hardware, Lowe’s sells a broad array of home-related goods.

Home prices and demand for home improvement supplies can have a significant impact on Lowe’s business. With the ongoing economic recovery and housing market on the mend, Lowe’s posted sizable sales increases in recent years. The company reported revenues of $59.1 billion in fiscal 2015, up from $56.2 billion the previous fiscal year.

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A few analysts weighed in on Lowe’s prior to the release of the earnings report:

JPMorgan reiterated an Overweight rating.
Oppenheimer reiterated an Outperform rating with an $85 price target.
Jefferies has a Hold rating with an $81 price target.
Deutsche Bank reiterated a Buy rating.
Merrill Lynch reiterated a Buy rating with an $88 price target.

So far in 2016, Lowe’s has been relatively flat compared with the broad markets, with the stock is only up 2%. Over the past 52 weeks, the stock is up 7%.

Shares of Lowe’s were trading down 0.6% at $76.54 midday Tuesday, with a consensus analyst price target of $84.26 and a 52-week trading range of $62.62 to $78.13.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.