Lowe's weak quarter stands in stark contrast to retail rival

For the three months that ended May 5, Lowe's reported earnings of $602 million, down from $884 million in the same period a year ago. (NYSE:LOW). Bowling Port Mngmt Ltd has invested 0.79% in Lowe's Companies, Inc. (NYSE:LOW) or 13,410 shares. Texas Permanent School Fund owns 260,574 shares or 0.25% of their U.S. portfolio. Its stock gained $8.76, or 7 percent, to $138.16. Lowe Brockenbrough Inc, a Virginia-based fund reported 37,350 shares. Mutual Of America Capital Mngmt Limited invested in 0.06% or 36,846 shares. (NYSE:LOW). Associated Banc has 174,639 shares. 118,262 were accumulated by Cullinan Assocs Incorporated. Profund Advsrs Ltd Com holds 0.1% or 31,143 shares in its portfolio. Beck Management Limited Liability Co reported 3,760 shares or 0.15% of all its holdings. $1.41 million worth of Lowe's Companies, Inc. (NYSE:LOW) shares were sold by CROOM MARSHALL A. Anson Funds Management Lp, a Texas-based fund reported 131,463 shares. $2.48 million worth of Lowe's Companies, Inc. (NYSE:LOW) for 4,400 shares. $2.48 million worth of Lowe's Companies, Inc. Maryland-based Chevy Chase Hldgs has invested 0.28% in Lowe's Companies, Inc.

In related news, SVP Matthew V. Hollifield sold 9,299 shares of the company's stock in a transaction on Friday, March 3rd. Peace Nelson B sold $290,089 worth of stock or 3,568 shares. It turned negative, as 87 investors sold LOW shares while 444 reduced holdings. With 4.52M shares average volume, it will take short sellers 2 days to cover their LOW's short positions. About 10.21 million shares traded or 113.60% up from the average. (LOW) may be overvalued, however, this can also depend upon the situation of the market; if the market is strong then it could suggest that Lowe's Companies, Inc. It has underperformed by 10.78% the S&P500.

26 analysts on average are expecting Lowe's Companies, Inc.to report earnings of $1.63 per share for the current quarter. The company has market cap of $67.50 billion. It now anticipates earning $4.30 per share for the fiscal year 2017, adding about 35 home improvement and hardware stores. It has a 25.49 P/E ratio.

As of May 5, Lowe's operated 2,137 home improvement and hardware stores in the United States, Canada and Mexico.

Among 20 analysts covering Lowe's Companies Inc. (NYSE:LOW), 8 have Buy rating, 1 Sell and 11 Hold. Therefore 40% are positive. Lowe's Companies had a return on equity of 46.46% and a net margin of 3.91%. (NYSE:LOW) has "Market Perform" rating given on Thursday, November 17 by Telsey Advisory Group.

LOW's Q1 headline was below published and market expectations that had risen recently, with some support from tax rate and share count, though still represents some of the best results in retail, in our view, with comps +2.0% and EPS +18% or 13% ex-tax change, on top of 24% past year. Atlantic Securities upgraded Lowe's Companies, Inc. On Tuesday, August 2 the stock rating was reinitiated by Stifel Nicolaus with "Buy". Jefferies maintained Lowe's Companies, Inc.

The first quarter earnings season is coming to a close. The rating was maintained by RBC Capital Markets with "Outperform" on Thursday, November 19.

Several brokerages recently issued reports on LOW. The firm has "Buy" rating given on Friday, August 14 by Longbow. The stock of Lowe's Companies, Inc. Cleveland downgraded the stock to "Neutral" rating in Thursday, October 6 report. Its book value per share for the most recent quarter is $7.41 while its price to book ratio for the same period is 10.78, as for as the company's cash per share for the most recent quarter is $0.66, however its price to cash per share ratio for the same period is 120.12.

  • Zachary Reyes