Lowe’s (LOW) Stock Falls 4% Despite Earnings Beat: Here’s Why

TLDR

• Lowe’s stock dropped about 4% to $208 after reporting mixed Q2 results on Wednesday
• Adjusted EPS came in at $4.40, beating the $4.22 estimate, but revenue of $26 billion missed the $26.14 billion forecast
• Full-year sales outlook was narrowed to $92 billion, below the Wall Street consensus of $92.94 billion
• Comparable sales rose just 0.2%, driven by professional customers and online sales, while DIY demand remained soft
• Analysts hold a Moderate Buy consensus on LOW with an average price target of $261.12, implying around 21% upside

Lowe’s stock dropped roughly 4% to around $208 in early Wednesday trading after the home improvement retailer posted a mixed Q2 and cut the top end of its full-year sales outlook.

Lowe’s Companies, Inc., LOW

The stock was already down 11% for the year heading into the print. The latest results did little to help.

For the quarter ending July 31, Lowe’s reported adjusted earnings of $4.40 per share, up 1.6% year over year and above the analyst estimate of $4.22. Total sales came in at $26 billion, up 8% from the same period last year, but just under the expected $26.14 billion.

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