Lowe's In Need of Home Improvement: Fool by Numbers
By Motley Fool Contributors
May 22, 2007
Recommended (16)
On May 21, Lowe's (NYSE: LOW) released first-quarter earnings for the period ended May 4.
- Revenues increased marginally, partially due to the woes in the housing market.
- First-quarter comparable same-store sales declined 6.3%.
- For the second quarter, same-store sales are anticipated to decline 1% to 3%.
- Lowe's is a three-star stock in Motley Fool CAPS, while competitor Home Depot (NYSE: HD) carries a two-star rating.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007
|
Q1 2006
|
Change
|
|
Sales
|
$12,172
|
$11,921
|
2.1%
|
|
Net Profit
|
$739
|
$841
|
(12.1%)
|
|
EPS
|
$0.48
|
$0.53
|
(9.4%)
|
|
Diluted Shares
|
1,540
|
1,590
|
(3.1%)
|
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007
|
Q1 2006
|
Change*
|
|
Gross Margin
|
35.0%
|
35.0%
|
0.0
|
|
Operating Margin
|
10.2%
|
11.8%
|
(1.6)
|
|
Net Margin
|
6.1%
|
7.1%
|
(1.0)
|
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets
|
Q1 2007
|
Q1 2006
|
Change
|
|
Cash + ST Invest.
|
$1,200
|
$1,657
|
(27.6%)
|
|
Accounts Rec.
|
No Data
|
No Data
|
No Data
|
|
Inventory
|
$8,501
|
$7,817
|
8.8%
|
|
Liabilities
|
Q1 2007
|
Q1 2006
|
Change
|
|
Accounts Payable
|
$5,211
|
$4,553
|
14.5%
|
|
Long-Term Debt
|
$4,306
|
$3,446
|
25.0%
|
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007
|
Q1 2006
|
Change
|
|
Cash From Ops.
|
$2,139
|
$2,110
|
1.4%
|
|
Capital Expenditures
|
$707
|
$732
|
(3.4%)
|
|
Free Cash Flow
|
$1,432
|
$1,378
|
3.9%
|
Free cash flow is a Fool's best friend.
Related Foolishness:
Home Depot is a
Motley Fool Inside Value
recommendation.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
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