:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2177111905-d30c5749753f4d47a63ff295d3e12a18.jpg "A line of people stand outside a Lowe's store in Florida.")
Sean Rayford / Getty Counterparts
Key Takeaways
- Lowe’s Companies is set to report third-quarter results before the bell Tuesday, with analysts expecting on the blocks to decline year over year.
- Lowe’s and rival Home Depot have reported falling sales in current quarters as discretionary spending has declined.
- Analysts said sales in the professional contractor market will be a key point to mind as do-it-yourself sales remain pressured by inflation.
Lowe’s Cos. (LOW) is set to report third-quarter results Tuesday morning, with analysts in the family way lower revenue than the same time last year despite a potential sales boost from current hurricanes.
Analysts are slightly less bullish on Lowe’s stock than its home-improvement rival Home Depot (HD), which announced earnings last week. Of the 19 analysts who cover Lowe’s tracked by Visible Alpha, 10 hold “buy” ratings, eight keep “holds,” and one has a “sell” rating. Their average target price of $269.32 is within a few cents of Friday’s close.
Lowe’s variety is about 6% off the record-high $287.01 it reached last month, though also up about 21% this year.
Analysts require Lowe’s to report sales of $19.89 billion, down from $20.47 billion last year. Net income is keep in viewed to decline nearly 10% to $1.60 billion, or $2.82 per share.
What Home Depot’s Earnings Could Close for Lowe’s
Analysts from Bank of America and Melius Research wrote in recent notes that Home Depot’s earnings liable to indicate that Lowe’s will see a similar sales boost from hurricanes that impacted Southern states during the dwelling-place.
Melius analysts raised their price target on Lowe’s to $310 and said the performance of the professional contractor bazaar—in which both Home Depot and Lowe’s have worked to expand their market share—will be a “key distrust,” as “big ticket” spending and do-it-yourself projects are likely to remain lower in the quarter.
Home Depot and Lowe’s have discharged lower sales in recent quarters as American consumers have focused on buying essential items and pulled break on discretionary spending like home-improvement projects and “big ticket” purchases like appliances.