What to Expect from Lowe’s Earnings Report Later Today

Lowe’s Companies Inc. (LOW) will be posting its quarterly earnings report today, just before trading closes, leaving investors to scramble on the company news first thing Tuesday morning.

What kind of earnings report is expected for the quarter? Analysts predict that the company’s revenue will have dropped from where it was last year, mostly due to high inflation and a decline in consumer spending on home improvement products.

Lowe’s and its rival Home Depot are both expecting revenue declines for this year as they report their earnings. They say that consumers are spending less on do-it-yourself projects. Fears over inflation have consumers being tighter with tighter wallets and opting to leave projects undone rather than spend money to fix things around the house.

The expectation for Lowe’s for this quarter is revenue around $21 billion. This is for the first fiscal quarter of 2024, and the figures are below what Lowe’s brought in for the same quarter back in 2023. For that quarter, Lowe’s reported $22.3 billion in revenue.

The company expects a profit of $1.68 billion, compared to $2.26 billion net income last year.

Where Will Lowe’s Stock Go?

The retailer’s stock price is already down ahead of the earnings report. The stock price for Lowe’s has dropped 0.77% and could go further as we get closer to the release of the earnings report.

Lowe’s stock peaked this year in late March at $261 per share. It is now down to $229 a share. We expect the stock price to decline further after the earnings report comes out and Lowe’s gives their forecast for the remainder of the year.

 We recommend caution in investing in this stock, since inflation is expected to remain high for now and home improvement product sales will likely stay low until that changes.

Lowe’s started a rewards system for its customers that went into effect since the last quarterly report. This will be the first quarter where they will see if that program has paid off for them.