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Lowe's (LOW) to Report Q1 Earnings: What's in the Cards?

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·5 min read
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Lowe's Companies, Inc. LOW is likely to register a bottom-line increase from the last fiscal-year quarter’s actuals when it reports first-quarter fiscal 2022 earnings on May 18, before the opening bell. The Zacks Consensus Estimate for fiscal first-quarter earnings has been stable in the past 30 days at $3.24 a share. This suggests 0.9% growth from the year-ago quarter’s tally.

However, LOW’s top line is likely to decline from the last fiscal-year quarter’s reading. The Zacks Consensus Estimate for quarterly revenues is pegged at $23.78 billion, which indicates a fall of 2.6% from the earlier fiscal-year quarter’s tally.

In the last reported quarter, LOW delivered an earnings surprise of 3.5%. The home-improvement retailer has a trailing four-quarter earnings surprise of 12.9%, on average.

Key Factors to Note

Lowe's has been benefiting from the solid execution of its Total Home strategy, which focuses on boosting productivity and enriching the integrated omni-channel shopping experience. Also, a strong digital base has been aiding its performance for a while now. Management is focused on enhancing the omni-channel retailing capabilities in store operations, website and supply chain to resonate well with customers’ demand.

In addition, pro business has been significantly contributing to Lowe's performance for sometime now. Management is quite focused on enhancing the Pro offering across LOW’s stores and online with improved service levels, deeper inventory quantities, intuitive store layout and an addition of Pro-focused brands. All these strengths are most likely to have driven Lowe’s performance in the quarter to be reported.

On the flip side, higher expenses associated with the pandemic and the ongoing supply-chain disruptions might have been concerns. Lowe’s is consistently investing in providing a pandemic-related support to its frontline hourly associates through bonuses and incentives.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Lowe's this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Lowe's Companies, Inc. Price and EPS Surprise

Lowe's Companies, Inc. Price and EPS Surprise
Lowe's Companies, Inc. Price and EPS Surprise

Lowe's Companies, Inc. price-eps-surprise | Lowe's Companies, Inc. Quote

Lowe's currently carries a Zacks Rank #3 and an Earnings ESP of +0.67%.

More Stocks With Favorable Combination

Here are a few other companies worth considering from the same sector as our model shows that these also have the right combination of elements to beat on earnings:

Ross Stores ROST currently has an Earnings ESP of +1.24% and a Zacks Rank #2. ROST is likely to register a bottom-line decline from the last fiscal-year quarter’s level when it reports first-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 99 cents suggests a decline from $1.34 reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rankstocks here

Ross Stores’ top line is expected to rise from the last fiscal-year quarter’s reported figure. The Zacks Consensus Estimate for quarterly revenues is pegged at $4.54 billion, which indicates a marginal improvement of 0.5% from the figure reported in the prior fiscal-year quarter. ROST has a trailing four-quarter earnings surprise of 33.3%, on average.

Performance Food Group Company PFGC currently has an Earnings ESP of +10.17% and a Zacks Rank of 2. PFGC is expected to register bottom-line growth from the last fiscal-year quarter’s level when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for quarterly earnings per share of 51 cents suggests growth from 19 cents in the prior fiscal-year quarter.

Performance Food Group Company's top line is anticipated to rise from the prior fiscal-year quarter’s actuals. The consensus mark for revenues is pegged at $13.11 billion, indicating an increase of 82% from the figure reported in the earlier fiscal-year quarter. PFGC has a trailing four-quarter earnings surprise of 1.5%, on average.

Costco COST currently has an Earnings ESP of +1.90% and a Zacks Rank of 2. COST is likely to register a bottom-line increase from the last fiscal-year quarter’s reading when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.04 suggests an increase of 10.6% from the earlier fiscal-year quarter’s reported number.

Costco’s top line is expected to have improved from the prior fiscal-year quarter’s reported number. The Zacks Consensus Estimate for quarterly revenues is pegged at $51.8 billion, suggesting growth of 14% from the prior fiscal-year quarter’s reported figure. COST has a trailing four-quarter earnings surprise of 13.3%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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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

Performance Food Group Company (PFGC) : Free Stock Analysis Report

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