Lowe's Earnings: Analysts Revise Forecasts Ahead of Call

As Lowe's Companies, Inc. (NYSE: LOW) prepares to report its fourth quarter 2024 earnings, analysts have revised their forecasts to reflect the company's recent performance and market trends. With the earnings call scheduled for Wednesday, February 26, investors are eager to understand the key factors driving these revisions and the potential impact on Lowe's stock.



Analysts project revenue of $18.2 billion for Lowe's in the fourth quarter of 2024, which implies a decline of 2% from the same period a year ago. This projection aligns with the company's recent performance, as sales dipped 1% year-over-year in the third quarter of 2024 to $20.2 billion. The consensus target for earnings per share (EPS) in Q4 2024 is $1.83, which compares to EPS of $1.77 reported in Q4 2023. This projection is consistent with the company's historical performance, as EPS dropped 2% YoY to $2.99 in Q3 2024.

Key factors driving the projected decline in revenue and earnings per share for Lowe's in the fourth quarter of 2024 include softness in demand for bigger-ticket discretionary projects, particularly in the do-it-yourself (DIY) customer segment, and modest storm-related demand. However, Lowe's is anticipated to benefit from strength in its Pro segment and online sales, which have shown significant potential for growth in recent quarters.



In the third quarter, the Pro segment recorded high single-digit positive comps, and the company's investments in serving the small to medium-sized Pro customer are yielding benefits. Additionally, Lowe's continued to grow its online sales, with a 6% comparable sales growth in Q3 2024. The retailer's efforts in offering product information online and increasing convenience with regards to order and delivery are expected to continue to pay off, contributing to the company's overall performance.

As Lowe's reports its fourth quarter 2024 earnings, investors will be closely watching the company's performance in the DIY segment, as well as its progress in the Pro segment and online sales channels. The revised analyst forecasts provide a valuable snapshot of market expectations for Lowe's earnings, but the company's ability to execute on its growth strategy will ultimately determine its long-term success.

In conclusion, Lowe's earnings are imminent, and analysts have revised their forecasts to reflect the company's recent performance and market trends. While the projected decline in revenue and earnings per share is driven by softness in the DIY segment and modest storm-related demand, Lowe's strength in the Pro segment and online sales channels offers potential for growth in the long term. As investors await the earnings call, they should closely monitor the company's performance in these key areas to make informed decisions about their investments.