Lowe's Companies, Inc. ($LOW) Earnings (Q2 FY23)

 Lowe's Companies, Inc. ($LOW) Earnings and Opinion:


Lowe's is a company in the Consumer Cyclical sector and operates in the Home Improvement Retail industry. The company operates as a home improvement retailer in the United States and internationally. Lowe's was founded in 1921 and is currently headquartered in Mooresville, North Carolina. The company made its debut on the stock marker in 1961. 

Lowe's Earnings Results:

  • Revenues of $27.48B missing expectations of $28.13B
  • Gross Profit of $9.13B missing expectations of $9.47B
  • Operating Income of $4.23B beating expectations of $4.19B
  • Adjusted EPS of $4.67 beating expectations of $4.61
Opinion: 
Lowe's traded a slight bit higher after reporting earnings before the market opened yesterday. The company had a mixed earnings report, but investors were able to take away the good from it and run. Lowe's missed expectations in both the Revenues and Gross Profit categories, but were able to beat expectations in Operating Income and EPS. As far as guidance goes, the revenues and operating margin guided higher than expected, but the EPS guidance came in lower than consensus estimates. As far as valuation goes, the P/E ratio is at 16.36 which is low compared to the industry average of 30.62. The P/S ratio is at 1.45 and is lower than industry averages of 3.08. The current ratio sits at 1.17, but the debt overwhelms the cash currently. The thing that sticks out is the book value and the return on equity. Both are currently at negative numbers right now. This is something to watch as the economy changes and shifts, hopefully, to ease the pain. As far as my opinion, I think Lowe's is right where it needs to be. It is pretty fair valued and wouldn't be a bad play. I am just looking for them to kind of pick up on the assets or terminate some of the debt to get the book value and return on equity back in check. They also pay out a dividend and it has increased, so it could be deemed to be a dividend-growth play as well.


*Information from Yahoo Finance, CMLVIZ, and Consensus Guru

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