Telsey Advisory Group Has Weak Forecast for LOW Q3 Earnings

Key Points

• Telsey Advisory Group has downgraded its Q3 2026 earnings per share estimate for Lowe's to $3.11, from a previous estimate of $3.12, while maintaining an "Outperform" rating and a price target of $305.00.
• Lowe's reported earnings of $4.33 per share in its latest quarterly results, exceeding analysts' expectations, despite having a slight revenue miss with $23.96 billion compared to estimates of $23.99 billion.
• The company recently increased its quarterly dividend to $1.20 per share, showing a commitment to returning value to shareholders amid fluctuating earnings projections.

Lowe's Companies, Inc. (NYSE:LOW - Free Report) - Equities research analysts at Telsey Advisory Group lowered their Q3 2026 EPS estimates for shares of Lowe's Companies in a research report issued to clients and investors on Wednesday, August 20th. Telsey Advisory Group analyst J. Feldman now expects that the home improvement retailer will post earnings of $3.11 per share for the quarter, down from their prior estimate of $3.12. Telsey Advisory Group has a "Outperform" rating and a $305.00 price target on the stock. The consensus estimate for Lowe's Companies' current full-year earnings is $11.90 per share. Telsey Advisory Group also issued estimates for Lowe's Companies' FY2026 earnings at $12.45 EPS, Q1 2027 earnings at $3.25 EPS, Q2 2027 earnings at $4.68 EPS, Q3 2027 earnings at $3.34 EPS and FY2027 earnings at $13.57 EPS.

Lowe's Companies (NYSE:LOW - Get Free Report) last released its quarterly earnings results on Wednesday, August 20th. The home improvement retailer reported $4.33 EPS for the quarter, beating analysts' consensus estimates of $4.24 by $0.09. The firm 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 8.20% and a negative return on equity of 52.02%. The business's revenue for the quarter was up 1.6% on a year-over-year basis. During the same period in the previous year, the business earned $4.10 EPS. Lowe's Companies has set its FY 2025 guidance at 12.200-12.450 EPS.

Other analysts also recently issued reports about the stock. Sanford C. Bernstein lifted their price objective on shares of Lowe's Companies from $266.00 to $279.00 and gave the stock an "outperform" rating in a report on Thursday. Citigroup cut their price target 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. Piper Sandler raised their price target on shares of Lowe's Companies from $269.00 to $294.00 and gave the stock an "overweight" rating in a report on Thursday. Mizuho reaffirmed an "outperform" rating and issued a $280.00 target price on shares of Lowe's Companies in a research report on Friday, June 13th. Finally, Wells Fargo & Company increased their price target on shares of Lowe's Companies from $260.00 to $300.00 and gave the stock an "overweight" rating in a research note on Thursday. Sixteen investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Lowe's Companies presently has an average rating of "Moderate Buy" and a consensus price target of $284.33.

Lowe's Companies Price Performance

LOW opened at $255.8520 on Friday. The company has a fifty day moving average price of $229.15 and a 200-day moving average price of $230.35. The firm has a market capitalization of $143.39 billion, a P/E ratio of 21.02, a price-to-earnings-growth ratio of 2.43 and a beta of 0.89. Lowe's Companies has a one year low of $206.38 and a one year high of $287.01.

Institutional Investors Weigh In On Lowe's Companies

A number of large investors have recently modified their holdings of LOW. Wood Tarver Financial Group LLC acquired a new stake in shares of Lowe's Companies during the fourth quarter worth about $25,000. Howard Hughes Medical Institute purchased a new position in shares of Lowe's Companies in the second quarter valued at approximately $27,000. Solstein Capital LLC increased its holdings in shares of Lowe's Companies by 627.8% in the second quarter. Solstein Capital LLC now owns 131 shares of the home improvement retailer's stock valued at $29,000 after purchasing an additional 113 shares during the last quarter. Traub Capital Management LLC purchased a new position in Lowe's Companies in the second quarter worth approximately $30,000. Finally, Vermillion & White Wealth Management Group LLC grew its position in Lowe's Companies by 128.8% in the second quarter. Vermillion & White Wealth Management Group LLC now owns 135 shares of the home improvement retailer's stock worth $30,000 after acquiring an additional 76 shares during the period. Hedge funds and other institutional investors own 74.06% of the company's stock.

Insider Buying and Selling at Lowe's Companies

In other news, CEO Marvin R. Ellison sold 40,000 shares of the stock in a transaction on 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 approximately $65,772,256.30. This represents a 13.84% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Juliette Williams Pryor sold 1,130 shares of the stock in a transaction on 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. This represents a 3.42% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 0.27% of the company's stock.

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 paid a $1.20 dividend. This is an increase from Lowe's Companies's previous quarterly dividend of $1.15. This represents a $4.80 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend was Wednesday, July 23rd. Lowe's Companies's payout ratio is currently 39.77%.

About Lowe's Companies

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.