Lowe's Financial Update: Strong Performance and Future Insights
Lowe's Q4 Performance Highlights
Lowe’s Companies, Inc. (NYSE: LOW) has reported a strong performance in the fourth quarter, showcasing higher-than-anticipated profits, which has boosted its stock price in the premarket session. The company recorded adjusted earnings per share of $1.93, surpassing analysts' expectations of $1.84.
Sales and Revenue Insights
During the quarter, Lowe’s achieved quarterly sales of $18.553 billion. While this marks a slight decline of 0.3% year over year, it remains above the consensus estimate of $18.292 billion. Comparable store sales saw a modest increase of 0.2%, propelled by growth in professional customer channels, online sales, holiday shopping, and recovery efforts following natural disasters, though this was somewhat offset by a drop in discretionary spending among DIY consumers.
Gross Margin and Operating Income
The gross margin for this quarter increased by 50 basis points year-on-year to reach 32.9%. Furthermore, the corporate operating income climbed to $1.83 billion from $1.687 billion compared to the previous year, establishing an improved operating margin of 9.9%—up 80 basis points.
Strategic Shareholder Investments
As of January 31, 2025, Lowe's proudly operates 1,748 stores, encompassing approximately 195 million square feet of selling space. The company has strategically focused on capital allocation, repurchasing 5.5 million shares at a cost of $1.4 billion, in addition to distributing $650 million in dividends. In total, Lowe's returned an impressive $6.5 billion to its shareholders during fiscal 2024.
Leadership Confidence
Marvin R. Ellison, Lowe’s chairman, president, and CEO, expressed confidence in both the home improvement sector's long-term strength and Lowe's strategic approach to capitalizing on projected industry recoveries. The company is pleased to announce the allocation of $80 million in discretionary bonuses to frontline associates, recognizing their dedication and hard work in providing outstanding customer service.
Operating Cash Flow Overview
In terms of financial health, Lowe's net cash provided by operating activities increased markedly for 2024, totaling $9.625 billion, up from $8.140 billion the previous year. This reflects the company’s robust operational efficiency and commitment to financial prudence.
Looking Ahead: 2025 Forecast
For 2025, Lowe's has projected earnings per share between $12.15 and $12.40, which is slightly below the consensus estimate of $12.51. Total sales are anticipated to range from $83.5 billion to $84.5 billion, a little shy of the $84.56 billion market consensus. Additionally, Lowe's expects to maintain an operating margin between 12.3% and 12.4%, along with approximately $2.5 billion earmarked for capital expenditures.
Current Stock Performance
In the most recent trading session, shares of LOW were observed to be up by 3.64%, trading at $251.21 during premarket hours.
Frequently Asked Questions
What were Lowe's earnings per share for Q4?
Lowe's reported adjusted earnings per share of $1.93 for the fourth quarter.
How much did Lowe's sales total for the quarter?
The total sales for Lowe's in the fourth quarter reached $18.553 billion.
What is the forecasted EPS for Lowe's in 2025?
Lowe's expects its earnings per share for 2025 to be between $12.15 and $12.40.
What are Lowe's future capital expenditures?
The company plans approximately $2.5 billion in capital expenditures for 2025.
How much did Lowe's return to shareholders in fiscal 2024?
Lowe's returned a total of $6.5 billion to its shareholders during fiscal 2024.
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