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Lowe's (LOW) posted a quarterly profit of $ 2.15 per share, exceeding the Zacks consensus estimate of $ 2 per share. This compares to a profit of $ 2.07 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents a profit surprise of 7.50%. A quarter of a month ago, it was expected that home improvement retailer would earn $ 1.33 per share while it posted a $ 1.22 profit, a -8 surprise, 27%.
In the last four quarters, the company has exceeded EPS consensus estimates twice.
Lowe's, which belongs to the Zacks Building Products Sector – Retail Products, achieved a turnover of $ 20.99 billion for the quarter ending in July 2019, surpassing 0 , 07% estimate the consensus of Zacks. This compares with last year's revenue of $ 20.89 billion. The company has exceeded three times the revenue estimated by consensus over the last four quarters.
The sustainability of the immediate movement of stock prices, based on recently published figures and future earnings forecasts, will depend primarily on management's feedback on the earnings call.
Lowe's shares have been up about 6% since the beginning of the year, compared to 15.7% for the S & P 500.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "What's next for Lowe?"data-reactid =" 22 ">What's next for Lowe?
Although Lowe's underperformed the market since the beginning of the year, the question for investors is: what's the next step for the title?
There is no easy answer to this key question, but the company's earnings outlook is a reliable measure to help investors. This includes not only the forecast of current consensus results for the coming quarters, but also the way in which these forecasts have changed recently.
Empirical research shows a strong correlation between short-term stock movements and trends in revisions to earnings estimates. Investors can track these revisions themselves, or rely on a proven scoring tool such as Zacks Rank, which has impressive experience operating the revision of earnings power estimates.
Prior to the release of these results, the trend of estimated revisions for Lowe's was mixed. Although the magnitude and direction of the revisions may change as a result of the release of the company's earnings report, the current status results in a Zacks # 3 ranking. (pending) for the stock. As a result, equities should evolve in line with the market in the near future. You can see the complete list of # 1 Zacks stock at current rank (strong buy) here.
It will be interesting to see how the estimates for the coming quarters and the current fiscal year will change in the coming days. The consensus against the current EPS forecast is $ 1.37 on revenue of $ 17.67 billion for the next quarter and $ 5.58 on revenue of $ 72.43 billion for fiscal year-over-year. course.
Investors should be aware that the outlook for the sector can also have a significant impact on the performance of the security. With regard to the Zacks industry ranking, construction products – retail are currently in the bottom 33% of the 250+ Zacks industries. Our research shows that the top 50% of industries ranked by Zacks perform better than the bottom 50% by a factor greater than 2 to 1.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Click to get this free report& nbsp;Lowe's Companies, Inc. (LOW): Free Stock Analysis Report& nbsp;To read this article on Zacks.com, click here.& nbsp;Zacks Investment Research"data-reactid =" 29 "> Click here to get this free report Lowe's Companies, Inc. (Free Stock Analysis Report) To read this article on Zacks.com, click here. Investment Research
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