The 10-second takeaway
For the quarter ended Nov. 2 (Q3), Lowe's beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share grew significantly.
Gross margins grew, operating margins dropped, net margins expanded.
Lowe's notched revenue of $12.07 billion. The 23 analysts polled by S&P Capital IQ expected sales of $11.94 billion on the same basis. GAAP reported sales were 1.9% higher than the prior-year quarter's $11.85 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.40. The 25 earnings estimates compiled by S&P Capital IQ predicted $0.35 per share. GAAP EPS of $0.35 for Q3 were 94% higher than the prior-year quarter's $0.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.3%, 20 basis points better than the prior-year quarter. Operating margin was 6.2%, 30 basis points worse than the prior-year quarter. Net margin was 3.3%, 140 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $10.75 billion. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $50.11 billion. The average EPS estimate is $1.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,149 members out of 2,439 rating the stock outperform, and 290 members rating it underperform. Among 711 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 655 give Lowe's a green thumbs-up, and 56 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lowe's is outperform, with an average price target of $31.08.
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