Lowe’s Companies Inc. (NYSE:LOW) Impresses With Latest Figures


Prior to the market opening on Wednesday, Lowe’s Companies Inc. (NYSE:LOW) released their Q2 results for 2014. The company reported $0.59 EPS, and revenue of $13.68 billion. The previous year’s figures for the same quarter were $0.47 EPS, totaling up revenue of $13 billion. The earlier Thomson Reuters projection of $0.58 EPS, with revenue at $13.55 billion is quite close to the actual Q3 figures.

It is expected that sales for the full annual period are estimated to go up 4.5% to 5.0% year-over-year. Projections for same-store sales are being placed at a range of 3.5% to 4.0%. Diluted EPS are expected to reach $2.68. According to the estimates that most analysts agree on placing EPS at $2.63, and profit yield of $55.7 billion. These predictions may be accurate, as the company’s own estimates suggest $55.82 billion in revenue, which is quite close to the unanimous figure reached by analysts.

Lowe’s Companies Inc. (NYSE:LOW) CEO has shown his satisfaction with the company’s performance and has stated that the company will continue to be hopeful about home improvement setting.

The company revealed that it has bought back $900 million worth of stock and has paid $229 million towards dividend in Q3. The company bought $2.9 million of its own shares and paid $597 million in dividends, for the first nine months of the current financial year.

Oppenheimer seems to have increased the price target for Lowe’s Companies Inc. (NYSE:LOW) from $60 to $70, which can be interpreted as ascend of nearly 20% from existing margins. The estimates for fiscal 2015, posted by the company has placed EPS at $3.70, against a crude estimate of $3.62. Furthermore, Oppenheimer also observed that shares of Lowe’s Companies Inc. (NYSE:LOW) and its rival company, Home Depot (NYSE:HD) perform quite well, and even accomplish to achieve better targets than those set by S&P 500, as opposed to orthodox market trends.

According to the forecasts released by Home Depot (NYSE:HD) on Tuesday, EPS is predicted at $34 million, which is inclusive of the losses occurred due to the breach that the company suffered in the current year. The company could not put much faith in these predictions’ accuracy, and see the impact of overheads and costs effecting future revenue figures. The remarkable values estimated for the EPS, earnings and revenues may not be precise as they are regardless of the damage this year’s breach will cause Home Depot (NYSE:HD). This wasn’t just a regular small scale hack; it resulted in 56 million customer data compromised. The hefty $34 million that the company has had to pay in its Q3 might not be the last payment paid in this regard. Home Depot (NYSE:HD) might have to pay heavily for its failure to keep its customer data safe from mal activity.

According to the premarket trading that took place on Wednesday, Lowe’s Companies Inc. (NYSE:LOW) shares were up 4.1% to $60.95. Before the results were released, the analysts at Thomson Reuters had agreed on $58 as the possible price target.