Lowe's Companies (NYSE:LOW) Announces Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Key Points

• Lowe's Companies reported earnings of $4.33 per share, exceeding estimates by $0.08, and provided updated guidance for FY 2025 at $12.200-$12.450 EPS.
• The company announced a quarterly dividend increase to $1.20, which reflects an annualized rate of $4.80 and a yield of 1.9%.
• Lowe's stock saw a gain of 2.1% following the earnings announcement, with a current market capitalization of $143.59 billion.

Lowe's Companies (NYSE:LOW - Get Free Report) posted its quarterly earnings results on Wednesday. The home improvement retailer reported $4.33 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.24 by $0.09, Zacks reports. The company had revenue of $23.96 billion during the quarter, compared to analyst estimates of $23.99 billion. Lowe's Companies had a net margin of 8.22% and a negative return on equity of 49.12%. Lowe's Companies's revenue for the quarter was up 1.6% compared to the same quarter last year. During the same period last year, the firm posted $4.10 EPS. Lowe's Companies updated its FY 2025 guidance to 12.200-12.450 EPS.

Lowe's Companies Trading Up 0.3%

NYSE:LOW opened at $257.2410 on Thursday. Lowe's Companies has a 12-month low of $206.38 and a 12-month high of $287.01. The firm has a market cap of $144.17 billion, a PE ratio of 21.31, a price-to-earnings-growth ratio of 2.42 and a beta of 0.89. The stock has a fifty day moving average price of $228.50 and a 200 day moving average price of $230.35.

Lowe's Companies Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, August 6th. Shareholders of record on Wednesday, July 23rd were paid a $1.20 dividend. This represents a $4.80 annualized dividend and a dividend yield of 1.9%. This is a positive change from Lowe's Companies's previous quarterly dividend of $1.15. The ex-dividend date was Wednesday, July 23rd. Lowe's Companies's payout ratio is presently 39.77%.

Insider Buying and Selling

In other news, EVP Juliette Williams Pryor sold 1,130 shares of the company's stock in a transaction dated Tuesday, June 3rd. The stock was sold at an average price of $227.50, for a total transaction of $257,075.00. Following the completion of the transaction, the executive vice president directly owned 31,898 shares of the company's stock, valued at approximately $7,256,795. This represents a 3.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 0.27% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lowe's Companies

Large investors have recently modified their holdings of the business. Brighton Jones LLC increased its stake in Lowe's Companies by 119.7% in the fourth quarter. Brighton Jones LLC now owns 31,965 shares of the home improvement retailer's stock valued at $7,889,000 after purchasing an additional 17,413 shares during the last quarter. Revolve Wealth Partners LLC grew its holdings in Lowe's Companies by 31.6% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,078 shares of the home improvement retailer's stock valued at $266,000 after buying an additional 259 shares during the period. Marshall Wace LLP increased its stake in shares of Lowe's Companies by 1,769.3% during the 2nd quarter. Marshall Wace LLP now owns 39,573 shares of the home improvement retailer's stock valued at $8,780,000 after acquiring an additional 37,456 shares during the last quarter. Jump Financial LLC lifted its holdings in shares of Lowe's Companies by 296.1% during the 2nd quarter. Jump Financial LLC now owns 5,941 shares of the home improvement retailer's stock worth $1,318,000 after acquiring an additional 4,441 shares during the period. Finally, Osterweis Capital Management Inc. boosted its position in shares of Lowe's Companies by 4,620.0% in the second quarter. Osterweis Capital Management Inc. now owns 236 shares of the home improvement retailer's stock worth $52,000 after acquiring an additional 231 shares during the last quarter. 74.06% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of analysts recently issued reports on the stock. Stifel Nicolaus increased their price target on shares of Lowe's Companies from $240.00 to $265.00 and gave the stock a "hold" rating in a report on Monday. DA Davidson decreased their price objective on shares of Lowe's Companies from $270.00 to $240.00 and set a "neutral" rating for the company in a research report on Thursday, May 22nd. Citigroup dropped their target price on Lowe's Companies from $253.00 to $242.00 and set a "neutral" rating on the stock in a research report on Thursday, July 31st. Robert W. Baird reduced their price target on Lowe's Companies from $295.00 to $285.00 and set an "outperform" rating for the company in a report on Thursday, May 22nd. Finally, KeyCorp raised Lowe's Companies from a "sector weight" rating to an "overweight" rating and set a $266.00 price objective on the stock in a report on Friday, April 25th. Fifteen research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $272.26.

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.