Lowe's Q1 Earnings Down, But Beat Market; Backs FY24 View; Stock Up

(RTTNews) - Home improvement major Lowe's Companies, Inc. on Tuesday maintained its fiscal 2024 earnings and sales outlook after reporting weak results in its first quarter. However, the quarterly earnings per share were above market estimates.

In pre-market activity on the NYSE, Lowe's shares were gaining around 3.1 percent to trade at $236.30.

Marvin Ellison, Lowe's chairman, president and CEO, said, "This quarter we rolled out our new DIY loyalty program nationally, expanded same-day delivery options and took market share in key categories. We continue to gain momentum with our Total Home strategy, reflected in our growth in Pro and online."

For fiscal 2024, the company continues to project earnings per share of approximately $12.00 to $12.30 and total sales of $84 billion to $85 billion.

Analysts polled by Thomson Reuters expect the company to report profit per share of $12.19 on revenue of $84.43 billion. Analysts' estimates typically exclude special items.

Comparable sales for the year are still expected to be down 2 to 3 percent compared to the prior year, and operating margin would be 12.6 percent to 12.7 percent.

In its first quarter, Lowe's' net earnings declined to $1.76 billion from $2.26 billion a year ago. Earnings per share was $3.06, compared to $3.77 last year.

The prior year's adjusted earnings per share were $3.67 excluding a gain associated with the 2022 sale of the Canadian retail business.

The Street expected the company to report profit per share of $2.94 for the quarter.

The first-quarter total sales were $21.36 billion, compared to $22.35 billion a year ago. Analysts had estimated $21.12 billion in revenue.

Comparable sales decreased 4.1 percent as the decline in DIY big ticket discretionary spending was partially offset by positive comparable sales in Pro and online.

As of May 3, Lowe's operated 1,746 stores representing 194.9 million square feet of retail selling space.

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