Zacks Research Issues Pessimistic Forecast for LOW Earnings

Key Points

• Zacks Research cut its Q2 2027 EPS forecast for Lowe’s to $4.24 from $4.45, signaling a more cautious near-term earnings outlook for the home improvement retailer.
• Lowe’s recently beat Wall Street’s quarterly expectations, posting EPS of $3.03 versus $2.97 expected and revenue of $23.08 billion, while also raising its quarterly dividend to $1.25 from $1.20.
• Analyst sentiment remains mixed but constructive overall: several firms lowered price targets, yet the stock still carries a “Moderate Buy” consensus with a $264.57 average price target.

Lowe's Companies, Inc. (NYSE:LOW - Free Report) - Research analysts at Zacks Research reduced their Q2 2027 earnings per share estimates for Lowe's Companies in a report issued on Wednesday, June 3rd. Zacks Research analyst Team now expects that the home improvement retailer will earn $4.24 per share for the quarter, down from their prior forecast of $4.45. The consensus estimate for Lowe's Companies' current full-year earnings is $12.50 per share. Zacks Research also issued estimates for Lowe's Companies' Q3 2027 earnings at $3.12 EPS, Q4 2027 earnings at $2.06 EPS, FY2027 earnings at $12.45 EPS, Q1 2028 earnings at $3.28 EPS, Q2 2028 earnings at $4.55 EPS, Q3 2028 earnings at $3.40 EPS, Q4 2028 earnings at $2.37 EPS, FY2028 earnings at $13.60 EPS, Q1 2029 earnings at $3.51 EPS and FY2029 earnings at $14.62 EPS.

Lowe's Companies (NYSE:LOW - Get Free Report) last announced its quarterly earnings results on Wednesday, May 20th. The home improvement retailer reported $3.03 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.97 by $0.06. The firm had revenue of $23.08 billion during the quarter, compared to the consensus estimate of $22.98 billion. Lowe's Companies had a negative return on equity of 67.96% and a net margin of 7.51%.The firm's quarterly revenue was up 10.3% compared to the same quarter last year. During the same period in the prior year, the company posted $2.92 earnings per share. Lowe's Companies has set its FY 2026 guidance at 12.250-12.750 EPS.

Several other equities research analysts also recently weighed in on LOW. Sanford C. Bernstein decreased their price objective on Lowe's Companies from $303.00 to $281.00 and set an "outperform" rating for the company in a report on Thursday, May 14th. Oppenheimer decreased their price objective on Lowe's Companies from $315.00 to $275.00 and set an "outperform" rating for the company in a report on Monday, May 18th. Guggenheim increased their price objective on Lowe's Companies from $280.00 to $300.00 and gave the company a "buy" rating in a report on Thursday, February 26th. Mizuho decreased their price objective on Lowe's Companies from $294.00 to $280.00 and set an "outperform" rating for the company in a report on Thursday, May 21st. Finally, Evercore decreased their price objective on Lowe's Companies from $250.00 to $230.00 in a report on Thursday, May 21st. Twenty-three investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Lowe's Companies presently has a consensus rating of "Moderate Buy" and a consensus price target of $264.57.

Lowe's Companies Trading Up 0.6%

LOW stock opened at $207.79 on Thursday. The company has a market capitalization of $116.51 billion, a P/E ratio of 17.56, a PEG ratio of 2.61 and a beta of 0.86. Lowe's Companies has a twelve month low of $203.40 and a twelve month high of $293.06. The business has a 50 day simple moving average of $231.16 and a 200-day simple moving average of $246.89.

Lowe's Companies Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 5th. Shareholders of record on Wednesday, July 22nd will be given a $1.25 dividend. The ex-dividend date is Wednesday, July 22nd. This is a positive change from Lowe's Companies's previous quarterly dividend of $1.20. This represents a $5.00 annualized dividend and a yield of 2.4%. Lowe's Companies's dividend payout ratio (DPR) is currently 40.57%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its position in Lowe's Companies by 1.7% in the fourth quarter. Vanguard Group Inc. now owns 56,230,787 shares of the home improvement retailer's stock worth $13,560,617,000 after acquiring an additional 924,625 shares in the last quarter. State Street Corp raised its position in Lowe's Companies by 0.5% in the third quarter. State Street Corp now owns 25,036,276 shares of the home improvement retailer's stock worth $6,291,867,000 after acquiring an additional 124,501 shares in the last quarter. Geode Capital Management LLC raised its position in Lowe's Companies by 7.1% in the fourth quarter. Geode Capital Management LLC now owns 13,326,581 shares of the home improvement retailer's stock worth $3,201,329,000 after acquiring an additional 887,579 shares in the last quarter. Norges Bank purchased a new position in Lowe's Companies in the fourth quarter worth $1,993,697,000. Finally, Northern Trust Corp raised its position in Lowe's Companies by 1.5% in the third quarter. Northern Trust Corp now owns 6,830,080 shares of the home improvement retailer's stock worth $1,716,467,000 after acquiring an additional 103,827 shares in the last quarter. Hedge funds and other institutional investors own 74.06% of the company's stock.

Key Lowe's Companies News

Here are the key news stories impacting Lowe's Companies this week:

• Positive Sentiment: Zacks Research raised its Q1 2028 EPS estimate for Lowe's, suggesting confidence in near-term earnings momentum. Lowe's Companies stock page
• Positive Sentiment: The firm also increased its Q1 2029 EPS forecast, along with a slightly higher Q3 2027 estimate and maintained FY2028/FY2029 earnings expectations at relatively strong levels, signaling longer-term confidence in Lowe’s profit potential. Lowe's Companies stock page
• Neutral Sentiment: Separately, Lowe’s shareholders affirmed board and pay practices at the annual meeting, which is unlikely to move the stock much on its own. Lowe’s shareholders affirm board, pay practices at annual meeting
• Negative Sentiment: Zacks Research trimmed several other estimates, including Q2 2027, Q4 2027, Q2 2028, Q4 2028, FY2027, FY2028 and FY2029, which points to some caution on Lowe’s longer-term earnings trajectory. Lowe's Companies stock page

Lowe's Companies Company Profile

Lowe's Companies, Inc is a leading home improvement retailer that operates large-format stores and digital channels serving both do-it-yourself homeowners and professional contractors. The company offers a broad assortment of products including building materials, lumber, appliances, tools and hardware, plumbing and electrical supplies, paint, flooring, kitchen and bath fixtures, outdoor and garden products, and home decor. Lowe's also provides a range of services such as installation, home improvement financing, tool and equipment rental, and contractor-focused sales programs.

Operations are centered on a nationwide brick-and-mortar store network supported by distribution centers and an e-commerce platform that enables online ordering, delivery and in-store pickup.

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