Lowe’s Q4 Earnings Meet Estimates, Revenues Beat

Lowe’s Lowe’s Companies Inc. (LOW – Analyst Report), one of the largest home improvement retailers, came out with fourth-quarter fiscal 2015 results, wherein adjusted earnings of 59 cents per share came in line with the Zacks Consensus Estimate and surged 28.3% year over year.

Management expects earnings of approximately $4.00 per share for fiscal 2016.

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2016 has been flat in the last 30 days. In the trailing four quarters (including the quarter under review), the company has underperformed the Zacks Consensus Estimate by an average of 1.3%.

Revenues: Lowe’s net sales of $13,236 million advanced 5.6% year over year, and surpassed the Zacks Consensus Estimate of $13,054 million. Comparable sales jumped 5.2% during the quarter.

Management anticipates total sales growth of roughly 6% (including the 53rd week), while comparable sales are expected to grow 4% in fiscal 2016.

Key Events: Lowe’s, which operated 1,857 home improvement and hardware outlets as of Jan 29, bought back $562 million of shares under its buyback program and paid $257 million in dividends in the quarter under review. The company now plans to open about 45 home improvement and hardware outlets in fiscal 2016.

Also, management notified its Australian joint venture partner – Woolworths Limited, its plans to start the course of exiting its investment in the joint venture.

Zacks Rank: Currently, Lowe’s carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.