On Nov. 20, home improvement retailer Lowe's (NYSE:LOW) released fiscal third-quarter 2006 earnings for the period ended Nov. 3. Here are the quick and dirty details for the quarter.

  • Sales grew 5.8% to $11.2 billion, while same-store sales fell 4%.
  • Net income grew 10.8%, while earnings advanced 15% to $0.46 as the company repurchased approximately 57 million shares.
  • Cash flow generation was strong, but free cash flow fell 15.1% from last year's year-to-date period.
  • For 2006, management is guiding diluted earnings of $1.95-$1.97, total sales growth of 9%, and flat store comps.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$11,211

$10,592

5.8%

Net Profit

$716

$646

10.8%

EPS

$0.46

$0.40

15%

Diluted Shares

1,551

1,608

(3.5%)

*13 weeks ended Nov. 3, 2006, and Oct. 28, 2005.

Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

34.5%

33.8%

0.7

Operating Margin

10.3%

9.9%

0.4

Net Margin

6.4%

6.1%

0.3

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$1,121

$2,309

(51.5%)

Accounts Rec.

$0

$0

N/A

Inventory

$7,219

$6,429

12.3%


Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$3,416

$3,201

6.7%

Long-Term Debt*

$4,426

$4,381

1%

*Included current portion.

Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$3,643

$3,360

8.4%

Capital Expenditures

$2,724

$2,277

19.6%

Free Cash Flow

$919

$1,083

(15.1%)
*39 weeks ended Nov. 3, 2006, and Oct. 28, 2005.

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Related Companies:

  • Home Depot (NYSE:HD)
  • Tractor Supply (NASDAQ:TSCO)
  • Builders FirstSource (NASDAQ:BLDR)
  • Builders Materials Holding Corp. (NASDAQ:BMHC)

Related Foolishness:

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Fool contributor Ryan Fuhrmann is long shares of Home Depot and Tractor Supply but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.