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Lowe's share fall on earnings miss

Published 08/23/2017, 01:03 PM
© Reuters.  Lowe's share fall on earnings miss
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Investing.com - Lowe’s Companies Inc (NYSE:LOW). shares were under pressure Wednesday after the company released its latest quarterly results, which missed expectations, and lowered its full year EPS forecast.

Lowe's adjusted EPS for its second quarter was $1.57 on revenue of $19.50 billion. Analysts forecast EPS of $1.62 on revenue of $19.53 billion. One positive of the company's latest quarter, same-store sales climbed 4.5%, slightly better than the expected 4.3% growth. For the full fiscal year, which ends on Feb. 2, 2018, Lowe's expects sales to climb 5%.

Looking ahead, Lowe's s lowered its earnings outlook for the full year, now expecting to earn between $4.20 and $4.30 a share. This is well below the analyst consensus estimate for $4.62 per share.

The company expects its more aggressive marketing will pressure its operating margin, and its operating margin in fiscal 2017 will increase 80 to 100 basis points, down from a previous forecast for 20 basis points.

Lowe's shares were down 5.7% in afternoon trade.

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