Shares of home improvement retailer Lowe’s Companies (NYSE: LOW) were down in pre-market trading on Tuesday at the time of publishing after the company issued a muted outlook. Lowe’s now expects FY23 total sales in the range of $87 billion to $89 billion versus its prior forecast between $88 billion and $90 billion while analysts are expecting the company to generate revenues of $88.57 billion.
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Lowe’s has projected FY23 adjusted diluted earnings in the range of $13.20 to $13.60 per share while its prior forecast was between $13.60 and $14.00 per share versus consensus estimates of $13.64.
Marvin R. Ellison, Lowe’s Chairman, President, and CEO commented, “We are pleased with the performance of our business despite record lumber deflation and unfavorable spring weather. Although we delivered positive comparable sales in Pro and online for the first quarter, we are updating our full-year outlook to reflect softer-than-expected consumer demand for discretionary purchases.”
In the first quarter, the retailer reported adjusted EPS of $3.67, up by 5% year-over-year and exceeding consensus estimates of $3.46 per share. The company generated revenues of $22.3 billion in Q1, a decline of 5.5% year-over-year and beating analysts’ estimates of $21.68 billion. Lowe’s comparable sales also fell by 4.3% in Q1.
Analysts are cautiously optimistic about LOW stock with a Moderate Buy consensus rating based on 10 Buys and eight Holds.
