Lowe's Companies (NYSE:LOW) Issues FY 2025 Earnings Guidance

Key Points

• Lowe's Companies has issued FY 2025 earnings guidance with an EPS forecast of 12.200-12.450, slightly above the consensus estimate of 12.249.
• The company anticipates revenue between $84.5 billion and $85.5 billion, which is in line with market expectations.
• Lowe's recently increased its quarterly dividend from $1.15 to $1.20, representing an annualized yield of 1.9%.

Lowe's Companies (NYSE:LOW - Get Free Report) updated its FY 2025 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 12.200-12.450 for the period, compared to the consensus estimate of 12.249. The company issued revenue guidance of $84.5 billion-$85.5 billion, compared to the consensus revenue estimate of $84.4 billion.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on LOW. Barclays increased their target price on shares of Lowe's Companies from $245.00 to $277.00 and gave the stock an "equal weight" rating in a report on Thursday. Citigroup reduced their price objective on shares of Lowe's Companies from $253.00 to $242.00 and set a "neutral" rating on the stock in a report on Thursday, July 31st. Sanford C. Bernstein raised their price objective on shares of Lowe's Companies from $266.00 to $279.00 and gave the company an "outperform" rating in a report on Thursday. Guggenheim restated a "buy" rating and issued a $300.00 price objective on shares of Lowe's Companies in a report on Thursday. Finally, Piper Sandler raised their price objective on shares of Lowe's Companies from $269.00 to $294.00 and gave the company an "overweight" rating in a report on Thursday. Sixteen analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Lowe's Companies has a consensus rating of "Moderate Buy" and an average target price of $284.33.

Lowe's Companies Stock Performance

Lowe's Companies stock traded up $7.9280 during midday trading on Friday, hitting $263.5780. 3,795,959 shares of the company's stock were exchanged, compared to its average volume of 3,175,845. Lowe's Companies has a 12-month low of $206.38 and a 12-month high of $287.01. The stock has a market cap of $147.72 billion, a price-to-earnings ratio of 21.66, a price-to-earnings-growth ratio of 2.41 and a beta of 0.89. The firm's 50 day simple moving average is $230.09 and its 200 day simple moving average is $230.39.

Lowe's Companies (NYSE:LOW - Get Free Report) last issued its quarterly earnings data on Wednesday, August 20th. The home improvement retailer reported $4.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.24 by $0.09. Lowe's Companies had a net margin of 8.20% and a negative return on equity of 52.02%. The company had revenue of $23.96 billion for the quarter, compared to the consensus estimate of $23.99 billion. During the same period last year, the firm posted $4.10 EPS. Lowe's Companies's revenue for the quarter was up 1.6% on a year-over-year basis. Lowe's Companies has set its FY 2025 guidance at 12.200-12.450 EPS. On average, equities research analysts forecast that Lowe's Companies will post 11.9 EPS for the current fiscal year.

Lowe's Companies Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, August 6th. Stockholders of record on Wednesday, July 23rd were issued a $1.20 dividend. The ex-dividend date of this dividend was Wednesday, July 23rd. This is a positive change from Lowe's Companies's previous quarterly dividend of $1.15. This represents a $4.80 annualized dividend and a dividend yield of 1.8%. Lowe's Companies's payout ratio is presently 39.77%.

Insider Activity

In other news, CEO Marvin R. Ellison sold 40,000 shares of Lowe's Companies stock in a transaction dated Wednesday, August 20th. The shares were sold at an average price of $264.10, for a total value of $10,564,000.00. Following the sale, the chief executive officer owned 249,043 shares of the company's stock, valued at $65,772,256.30. The trade was a 13.84% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Juliette Williams Pryor sold 1,130 shares of Lowe's Companies stock in a transaction dated Tuesday, June 3rd. The shares were sold at an average price of $227.50, for a total transaction of $257,075.00. Following the completion of the sale, the executive vice president directly owned 31,898 shares in the company, valued at approximately $7,256,795. The trade was a 3.42% decrease in their position. The disclosure for this sale can be found here. 0.27% of the stock is owned by insiders.

Institutional Trading of Lowe's Companies

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Raymond James Financial Inc. boosted its holdings in shares of Lowe's Companies by 5.1% in the second quarter. Raymond James Financial Inc. now owns 1,344,884 shares of the home improvement retailer's stock valued at $298,390,000 after acquiring an additional 65,785 shares in the last quarter. Alliancebernstein L.P. lifted its stake in shares of Lowe's Companies by 10.3% in the second quarter. Alliancebernstein L.P. now owns 1,305,335 shares of the home improvement retailer's stock valued at $289,615,000 after purchasing an additional 121,590 shares during the period. Worldquant Millennium Advisors LLC lifted its stake in shares of Lowe's Companies by 243.2% in the second quarter. Worldquant Millennium Advisors LLC now owns 1,116,945 shares of the home improvement retailer's stock valued at $247,817,000 after purchasing an additional 791,526 shares during the period. California State Teachers Retirement System lifted its stake in shares of Lowe's Companies by 0.3% in the second quarter. California State Teachers Retirement System now owns 877,310 shares of the home improvement retailer's stock valued at $194,649,000 after purchasing an additional 2,275 shares during the period. Finally, Canada Pension Plan Investment Board lifted its stake in shares of Lowe's Companies by 67.5% in the second quarter. Canada Pension Plan Investment Board now owns 763,272 shares of the home improvement retailer's stock valued at $169,347,000 after purchasing an additional 307,521 shares during the period. Hedge funds and other institutional investors own 74.06% of the company's stock.

Lowe's Companies Company Profile

Lowe's Companies, Inc, together with its subsidiaries, operates as a home improvement retailer in the United States. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. It also provides home improvement products, such as appliances, seasonal and outdoor living, lawn and garden, lumber, kitchens and bath, tools, paint, millwork, hardware, flooring, rough plumbing, building materials, décor, and electrical.