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Earnings Review and Free Research Report: Lowe's Adjusted Diluted EPS Increased 14.6%

LONDON, UK / ACCESSWIRE / September 12, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Lowe's Cos., Inc. (NYSE: LOW), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=LOW, following the Company's disclosure of its financial results on August 23, 2017, for the second quarter of the fiscal year 2017. The Company's net revenue increased 6.8% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today, you also will be signing up for a complimentary member's account at:


At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on LOW. With the links below, you can directly download the report of your stock of interest-free of charge at:


Earnings Reviewed

For the three months ended August 4, 2017, Lowe's net revenue increased 6.8% to $19.50 billion from $18.26 billion in Q2 FY16. The increase was driven by total customer transaction growth of 3.1% and average total ticket growth of 3.5%. The net revenue was below analysts' expectations of $19.52 billion.

For the reported quarter, the Company's gross profit increased 6% to $6.67 billion from $6.29 billion in Q2 FY16. During Q2 FY17, Lowe's gross margin decreased 20 basis points to 34.2% of revenue from 34.4% of revenue in Q2 FY16. The decrease was primarily due to promotional activity and an increase in inflation.

For the reported quarter, Lowe's selling, general, and administrative expenses (SG&A) increased 1.6% to $3.93 billion from $3.87 billion in Q2 FY16. During Q2 FY17, the Company's depreciation expenses decreased 3.8% to $357 million from $371 million in Q2 FY16.

During Q2 FY17, Lowe's operating income increased 16.1% to $2.38 billion from $2.05 billion in Q2 FY16. For the reported quarter, the Company's operating margin increased 100 basis points to 12.2% of revenue from 11.2% of revenue in Q2 FY16.

For the reported quarter, the Company's effective tax rate was 36.2% compared to 38.1% in Q2 FY16.

During Q2 FY17, Lowe's net income increased 21.4% to $1.42 billion on a y-o-y basis from $1.17 billion in Q2 FY16. For the reported quarter, the Company's diluted earnings per share (EPS) increased 28.2% to $1.68 on a y-o-y basis from $1.31 in Q2 FY16. During Q2 FY17, Lowe's adjusted diluted EPS increased 14.6% to $1.57 from $1.37 in Q2 FY16. The adjusted diluted EPS was below analysts' expectations of $1.62.

During Q2 FY17, the Company repurchased $1.25 billion of stock.

On August 18, 2017, Lowe's Board of Directors declared a quarterly cash dividend of $0.41 per share, payable on November 8, 2017, to shareholders of record as of October 25, 2017.

Balance Sheet

As on August 04, 2017, Lowe's cash and cash equivalents decreased 14.6% to $1.70 billion from $1.99 billion in Q2 FY16.

During Q2 FY17, the Company's net merchandise inventory increased 7.6% to $11.41 billion from $10.60 billion in Q2 FY16.

For the reported quarter, Lowe's accounts payable increased 12.3% to $8.65 billion from $7.70 billion in Q2 FY16.

During Q2 FY17, the Company's net long-term debt increased 8% to $15.79 billion from $14.62 billion in Q2 FY16.

During Q2 FY17, the Company's return on invested capital (ROIC) was 17%, compared to 15.47% in Q2 FY16.

During H1 FY17, the Company's cash provided by operating activities was $5.07 billion, compared to $4.63 billion in H1 FY16.


For FY17, Lowe's expects total revenue growth to be 5% and comparable sales growth to be 3.5%.

The Company expects effective tax rate to be 36.9% and estimates adjusted diluted EPS to be in the range of $4.20 - $4.30 for the fiscal year 2017.

Stock Performance

On Monday, September 11, 2017, the stock closed the trading session at $77.50, dropping 1.35% from its previous closing price of $78.56. A total volume of 7.41 million shares have exchanged hands, which was higher than the 3-month average volume of 6.45 million shares. Lowe's stock price advanced 0.64% in the last one month and 7.98% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 8.97%. The stock is trading at a PE ratio of 21.84 and has a dividend yield of 2.12%. The stock currently has a market cap of $65.18 billion.

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SOURCE: Pro-Trader Daily