Lowe's Cos. (LOW) Tops Q4 EPS by 1c, Revenues Miss, Comp. Sales Up 2.4%; Offers FY19 EPS Mid-Point Guidance Above Consensus

Lowe's Cos. (NYSE: LOW) reported Q4 EPS of $0.80, $0.01 better than the analyst estimate of $0.79. Revenue for the quarter came in at $15.6 billion versus the consensus estimate of $15.75 billion.

"Overall, we are pleased with the progress we are making in our business," commented Marvin R. Ellison, Lowe\'s president and CEO. "Most of the intense work over the past six months to transform our company has been in preparation for an improved spring season and fiscal 2019. Therefore, we are encouraged by an improved comparable sales progression through the fourth quarter, culminating in U.S. home improvement comp growth of 5.8% in January. Although we have remaining work to do, we are pleased with the results we are seeing in early spring categories, which is evidence that we are focused on the right actions at this stage of our transformation.

"U.S. macroeconomic fundamentals remain sound for 2019, and we will continue to implement process and technology improvements to capitalize on the immediate opportunity to improve results. We anticipate continued weakness in the Canadian housing market in the near-term, but remain confident in our market position in Canada and the long-term potential of that business. I would like to thank all of our associates for their commitment and dedication to serving our customers and communities," added Ellison.

GUIDANCE:

Lowe's Cos. sees FY2019 EPS of $6.00-$6.10, versus the consensus of $6.04.

Fiscal Year 2019 (comparisons to fiscal year 2018)

• Total sales are expected to increase approximately 2 percent.
• Comparable sales are expected to increase approximately 3 percent.
• Operating income as a percentage of sales (operating margin) is expected to increase 375 to 385 basis points.
• Adjusted operating income as a percentage of sales (adjusted operating margin) is expected to increase 85 to 95 basis points.
• The effective income tax rate is expected to be approximately 24%.
• Diluted earnings per share of $6.00 to $6.10 are expected for the fiscal year ending Jan. 31, 2020.

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

You May Also Be Interested In

• American Express (AXP) down despite beating Q1 estimates on top and bottom lines
• Norfolk Southern (NSC) corrects Ancora's false and misleading statements
• Senesco Technologies, Inc. (SNT) Reports Q1 EPS of $0.02