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Can Lowes Mimic Home Depot’s Success?

Published 11/15/2016, 12:07 PM
Updated 05/14/2017, 06:45 AM
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Home-improvement warehouse operator Lowe’s Companies (NYSE:LOW) will deliver its latest earnings report before the opening bell on Wednesday, Nov. 16. Here’s your cheat sheet for how things may play out.

Analysts expect the Mooresville, NC-based company to deliver Q3 earnings per share of $0.97, on 6% higher revenues of $15.9 billion. Wall Street is also looking for full-year 2016 EPS of $4.03, on 10% revenue growth to to $64.9 billion.

During its last earnings report in August, Lowe’s provided full-year guidance of $4.06 per share, down from a prior outlook of $4.11. Investors will definitely be looking for that forecast to improve this time around, and also will want to see a strong outlook for 2017.

Lowe’s is also expecting 2016 full-year comparable sales to rise 4%.

LOW, like its chief competitor Home Depot (NYSE:HD), faces numerous headwinds, including a weak global economic climate as well as inclement weather in Q3 that disrupted construction plans in certain areas of the country.

This morning, Home Depot posted better-than-expected results and boosted its outlook, which likely bodes well for Lowe’s latest results. However, if the company doesn’t live up to expectations, shares could take a major hit tomorrow.

Lowe’s shares were unchanged in premarket trading Tuesday at $70.01. Year-to-date, LOW has fallen 7.93%, versus a 6.24% gain in the benchmark S&P 500 during the same period.

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