Lowe's Cos. (LOW) Misses Q1 EPS by 8c, Miss on Revenues; Offers FY18 EPS Mid-Point Outlook Below Consensus

Lowe's Cos. (NYSE: LOW) reported Q1 EPS of $1.19, $0.08 worse than the analyst estimate of $1.27. Revenue for the quarter came in at $17.4 billion versus the consensus estimate of $17.69 billion.

Fiscal Year 2018 (comparisons to fiscal year 2017; based on U.S. GAAP)

• Total sales are expected to increase approximately 5 percent.
• Comparable sales are expected to increase approximately 3.5 percent.
• The company expects to add approximately 10 home improvement and hardware stores.
• Operating income as a percentage of sales (operating margin) is expected to decrease approximately 40 basis points.2
• The effective income tax rate is expected to be approximately 25.5%.
• Diluted earnings per share of $5.40 to $5.50 are expected for the fiscal year ending Feb. 1, 2019.

"We drove solid performance in indoor categories and continued to grow our sales to Pro customers. However, prolonged unfavorable weather across geographies led to a delayed spring selling season which impacted results in outdoor categories," commented Robert A. Niblock, Lowe\s chairman, president and CEO. "Spring has now arrived and we are encouraged by strong sales in the month of May.

"We continue to work diligently to improve conversion, better manage inventory and stabilize gross margin, while investing in the capabilities required to deliver simple and seamless customer experiences," Niblock added. "I'd like to thank our employees for their commitment and dedication to helping people love where they live."

GUIDANCE:

Lowe's Cos. sees FY2018 EPS of $5.40-$5.50, versus the consensus of $5.48.

For earnings history and earnings-related data on Lowe's Cos. (LOW) click here.

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