Lowe’s reports earnings on Wednesday.
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Lowe’s Cos. has seen its stock jump as people spend more money on their homes. The home improvement retailer’s third-quarter results, due out on Wednesday, will show how strong those trends remained, even as many Covid-19 restrictions were lifted in the summer months.
Lowe’s (ticker: LOW) has climbed more than 30% in 2020, ahead of larger rival Home Depot, although both have benefited from people staying at home and buying houses.
As a result, the shares tend to sell off on reopening-related headlines, like the recent news that a successful vaccine may be in the works. However, analysts are still expecting strong results when the company reports earnings this week.
Lowe’s second-quarter, reported in August, came in well ahead of analysts’ estimates, sending the shares higher. Some expect the stock’s rally to keep going, given the strides Lowe’s has made. Others on Wall Street, however, say its stock performance could moderate as the scales tip back toward Home Depot.
Analysts are looking for Lowe’s to earn $1.98 a share on revenue of $21.13 billion. That compares with EPS of $3.75 in the previous quarter and $1.41 in the year-ago period.
Nearly three-quarters of the 31 analysts tracked by FactSet have a Buy rating or the equivalent on Lowe’s, with 23% rating it at Hold. There is just one bearish call on the Street. The average analyst price target is $184.18.
Lowe’s will host a conference call at 9 a.m. ET on Wednesday.
Write to Teresa Rivas at [email protected]
