Lowe's Companies, Inc. Reports Third Quarter 2024 Financial Results
Lowe's Companies, Inc. (NYSE: LOW) reported its financial results for the third quarter, which ended on November 1, 2024.
Key Financial Metrics
| Metric | Current Quarter | YoY Comparison | Consensus Estimate |
|---|---|---|---|
| Total Revenue | $20.2 billion | -$0.3 billion | $19.92 billion |
| Diluted EPS | $2.99 | -$0.07 | $2.81 |
| Adjusted Diluted EPS | $2.89 | Not provided | Not provided |
Lowe's reported a total revenue of $20.2 billion for the quarter, slightly above the consensus estimate of $19.92 billion, albeit a decrease from last year's $20.5 billion. The diluted earnings per share stood at $2.99, surpassing the Wall Street forecast of $2.81, despite a year-over-year decline from $3.06. These results reflect a mixed performance, with external challenges like decreased DIY discretionary spending balanced somewhat by strong growth in segments like Pro and online sales, aided slightly by storm-related demand.
Revenue Performance by Segment
| Segment | Performance |
|---|---|
| Pro and online | High-single-digit growth |
| Bigger-ticket DIY projects | Continued softness |
| Smaller-ticket outdoor DIY | Positive performance |
The company's Pro and online segments witnessed high single-digit growth, countering the decrease in larger DIY projects. Smaller-ticket outdoor DIY projects also contributed positively, reflecting changes in consumer spending behaviors.
Operational Highlights
- Recognized a $54 million pre-tax gain from the 2022 sale of the Canadian retail business, impacting the diluted EPS by $0.10.
- Lowe's operated 1,747 stores, across 195.0 million square feet of retail selling space.
- Approximately 2.9 million shares repurchased for $758 million during the quarter.
- Paid $654 million in dividends, reflecting a commitment to shareholder returns.
Executive Comments
Marvin R. Ellison, Lowe's chairman, president, and CEO, praised the company's performance, attributing it to robust Pro and online sales. He extended sympathy to communities impacted by Hurricanes Helene and Milton and expressed appreciation for the commitment of associates, suppliers, and first responders. Ellison highlighted upcoming growth and productivity initiatives, signaling confidence in capitalizing on the home improvement recovery.
Shareholder Returns
Lowe's continued to focus on capital allocation, repurchasing nearly 2.9 million shares and distributing $654 million in dividends during the quarter, underscoring its dedication to returning value to shareholders.
Forward Guidance
Lowe’s updated its full-year 2024 outlook, raising the total sales projection to $83.0-$83.5 billion from the previous $82.7-$83.2 billion. Adjusted diluted EPS is now expected to be in the range of $11.80 to $11.90, slightly higher than previous projections.
Stock Price Movement
Following the earnings release, Lowe's stock experienced an increase of approximately 0.88%, indicating market approval of the company's financial performance and revised guidance.
Overall, Lowe's demonstrated resilience in its third quarter performance, effectively navigating market challenges and showcasing solid strategic execution across its business segments.
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