Lowe's Q4 Earnings & Sales Beat Estimates, Comps Rise Y/Y

Lowe’s Companies, Inc. LOW reported fourth-quarter fiscal 2024 results, with the top and bottom lines surpassing the Zack Consensus Estimate. While net sales declined marginally year over year, earnings improved from the year-ago period. The Mooresville, NC-based company posted comparable sales growth, ending its streak of declines.LOW’s Quarterly Performance: Key Metrics and InsightsThe home improvement retailer posted adjusted quarterly earnings of $1.93 per share, which came ahead of the Zacks Consensus Estimate of $1.83. The figure marked an improvement from earnings of $1.77 reported in the same period last year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Net sales of $18,553 million surpassed the Zacks Consensus Estimate of $18,346 million but declined 0.3% year over year. Comparable sales for the quarter increased 0.2%, showing an improvement from the 1.1% decline recorded in the third quarter. This improvement stems from high-single-digit growth in Pro and online comparable sales, strong holiday performance and post-hurricane rebuilding efforts, partly offset by continued softness in do-it-yourself discretionary spending. This performance outpaced our estimate of a 2.1% decline in comparable sales.The gross profit increased 1.2% year over year to $6,097 million, while the gross margin expanded 50 basis points to 32.9%. We had expected a gross margin expansion of 30 basis points.The operating income increased 8.5% to $1,830 million, while the operating margin expanded 80 basis points to 9.9%. We had envisioned a 30-basis point increase in the operating margin.Lowe's Companies, Inc. Price, Consensus and EPS Surprise Lowe's Companies, Inc. price-consensus-eps-surprise-chart | Lowe's Companies, Inc. QuoteLOW’s Financial Health SnapshotThis Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $1,761 million, long-term debt (excluding current maturities) of $32,901 million and shareholders’ deficit of $14,231 million.For fiscal 2024, Lowe’s generated cash flow from operations of $9,625 million. During the quarter, the company executed a buyback of around 5.5 million shares, amounting to $1.4 billion.A Sneak Peek Into LOW’s FY25 OutlookLowe’s fiscal 2025 guidance highlights continued near-term uncertainty in the home improvement market. Management anticipates total sales between $83.5 billion and $84.5 billion compared with $83.7 billion reported in fiscal 2024. Comparable sales are expected to be flat to up 1%. The adjusted operating margin is projected between 12.3% and 12.4%. Lowe’s foresees adjusted earnings per share in the band of $12.15-$12.40. It anticipates capital expenditures of approximately $2.5 billion for fiscal 2025.Lowe’s Stock Price PerformanceShares of Lowe’s have risen 1.3% in the past six months compared with the industry’s growth of 3.2%.Don’t Miss These Solid BetsSprouts Farmers SFM, which is engaged in the retailing of fresh, natural and organic food products, currently sports a Zacks Rank #1 (Strong Buy). SFM has a trailing four-quarter earnings surprise of 15.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Sprouts Farmers’ current financial-year sales and earnings implies growth of 12% and 18.9%, respectively, from the year-ago reported numbers.Costco COST, a membership warehouse club, currently carries a Zacks Rank #2 (Buy). COST has a trailing four-quarter earnings surprise of 2%, on average. The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings implies growth of 7.4% and 11.9%, respectively, from the year-ago reported numbers.Ross Stores ROST, which operates off-price retail apparel and home fashion stores, currently carries a Zacks Rank #2. ROST has a trailing four-quarter earnings surprise of 8.5%, on average. The Zacks Consensus Estimate for Ross Stores’ current financial-year sales and earnings suggest growth of 3.7% and 11.2%, respectively, from the year-ago reported numbers.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lowe's Companies, Inc. (LOW): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report Ross Stores, Inc. (ROST): Free Stock Analysis Report Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks