Were Expectations Too High for Lowe's?

By Mark Reeth – Nov 20, 2013 at 5:51PM

NYSE: HD

Home Depot

Market Cap

$329B

Today's Change

(0.94%) $3.11

Current Price

$335.09

Price as of April 26, 2024, 4:00 p.m. ET

Lowe's quarter was none too shabby, but Wall Street wanted more. Were expectations just too high?

In this video from Wednesday's edition of MarketFoolery, host Mark Reeth and Motley Fool analysts Matt Argersinger and Bryan White take a deep Foolish dive into retail stock earnings and what the holiday season ahead looks like for the retail sector.

Lowe's (LOW -0.04%) reported net earnings that were up 26% year over year, with same-store sales up 6.2%. The company also upped its guidance for the coming quarter. Despite all this, the strength of the housing market combined with Home Depot's (HD 0.94%) incredibly solid earnings report had analysts predicting higher for Lowe's, and the stock sold off a bit on the news. Did Lowe's truly underperform or were the expectations just too high? Our analysts take a look at Lowe's and the home-improvement retail business today.

Fool contributors Bryan White and Mark Reeth have no position in any stocks mentioned, and neither does Matthew Argersinger. The Motley Fool recommends Home Depot. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.