Lowe’s set to report stable financial position and positive price performance in Q1 earnings.

☀️ Lowe’s Co., the leading home improvement retailer, is set to report its first quarter earnings results for 2023 on May 23rd at 9:00 AM EST. Based on the data available, the company seems to be in a stable financial position with a positive price performance over the past 3 months. Although analysts have not revised their estimates for Q1 earnings, Lowe’s has a history of performing well in the home improvement sector. Here, we will explore the fundamental analysis, technical analysis, historical guidance, and analyst estimates for Lowe’s Q1 earnings and what investors can expect from this upcoming earnings call.

Fundamental Analysis

Lowe’s Co. had an impressive year in 2022, boasting a net income of $6.7 billion and a revenue of $93.9 billion. Its EPS for the year was $11.01, indicating strong earning power. Looking at its past earnings reports, Lowe’s has consistently exceeded market expectations, demonstrating its competitive edge within the home improvement industry. With a solid balance sheet and strong liquidity, it is likely that the company will maintain its positive financial position.

Technical Analysis

Lowe’s Co.’s stock price has been on an upward trend in the past 3 months, rising from its lowest point of $187.4 on February 22nd to its current price of $204.9 as of May 19th. Despite a slight dip in price in the past day, the stock is still trading above its 5-day average of $202.7 indicating short term bullish sentiment. It’s important to note that Lowe’s Co. has been trending consistently above its 50-day moving average ($192.28) and 200-day moving average ($184.54), indicating overall bullish price performance over a longer period.

Historical Guidance

Looking at Lowe’s Co.’s past performance over the last four quarters, we can draw insights into the strengths and weaknesses in its financial position. The company’s net income in Q1 2022 was $2.3 billion, which is a 1.6% increase from the previous quarter, and its EPS was $3.51, in line with the current analyst estimate. This shows that Lowe’s has maintained a consistent level of profitability. In Q2 2022, its net income increased to $2.9 billion, indicating a strong and positive momentum for the company. However, in Q3 2022, its net income decreased significantly to $154 million, which might have been affected by the ongoing supply chain issues due to the pandemic. Lowe’s returned to profitability in Q4 2022 with a net income of $958 million, driven by holiday shopping sales. Overall, Lowe’s Q1 earnings report will provide insights into whether the company can continue its strong momentum into this year.

Analysts Estimates

Morningstar’s consensus estimate for Lowe’s Co.’s Q1 earnings per share (EPS) is $3.51, with no revision over the past 60 days. This suggests that analysts have remained largely bullish about the company’s financial performance. It’s worth noting that Lowe’s has consistently exceeded market expectations, so there could be potential for an even better performance than expected.

Conclusion

Lowe’s Co.’s upcoming earnings report for Q1 2023 will be important to assess the company’s continued financial stability and momentum. The fundamentals are strong, technical analysis suggests a bullish outlook, and there have been no changes in analysts’ estimates. The company’s history of outperforming Wall Street expectations is also a good sign for investors and indicates confidence in its ability to drive growth even during a challenging economic environment. The upcoming earnings call is not one to miss for those interested in the home improvement sector, as it provides essential insights into one of the leading companies in the industry.