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Lowe's Companies, Inc. (NYSE:LOW) is scheduled to report its Q2 2012 results on August 20, 2012, before market opens. The Street expects EPS and revenue of $0.70 and $14.50B, respectively.

In this article, I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from LOW and the news from its closest competitors.

Lowe

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter, it reported $0.44 EPS, beating analyst estimates of $0.42.

Lowe

The consensus EPS estimate is $0.70 based on 24 analysts' estimates, up from $0.68 a year ago. Revenue estimates are $14.50B, just below $14.54B from a year ago. The median target price by analysts for the stock is $30.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On May 22, 2012, RBC Capital Mkts reiterated an Outperform rating for the company.
  • On April 18, 2012, UBS reiterated a Buy rating for the company.
  • On March 20, 2012, Deutsche Bank reiterated a Buy rating for the company.

Latest News

  • On July 31, 2012, Reuters reported that RONA Inc. rejected Lowe's Companies, Inc.'s unsolicited $1.8 billion takeover offer. Scotiabank and BMO Capital Markets were Rona's financial advisers for the deal.
  • On July 31, 2012, Lowe's Companies, Inc. confirmed that it has made a non-binding proposal to the Board of Directors of Canadian home improvement and hardware retailer RONA Inc. to acquire all of the issued and outstanding common shares of RONA for CAD14.50 in cash per share.
  • On June 26, 2012, Lowe's Companies, Inc. announced that for fiscal 2012, it expects to grow the company's sales 1% to 3% comparable same store sales (comps), as the company has outlined on the first quarter call, drive gross margin increase, and take about $200 million of inventory out.
  • On May 21, 2012, Lowe's Companies, Inc. announced that for fiscal 2012, it expects total sales to increase 1%-2%, comparable store sales to increase 1%-3% and diluted earnings per share (EPS) of $1.73-$1.83. The Company reported sales of $48.815 billion for fiscal 2011.
  • On April 17, 2012, Lowe's Companies, Inc. announced it has agreed to sell $500 million of 1.625% Notes due 2017, $750 million of 3.12% Notes due 2022 and $750 million of 4.65% Notes due 2042.
  • On March 23, 2012, Lowe's Companies, Inc. announced that it declared a quarterly cash dividend of $0.14 per share, payable May 9, 2012, to shareholders of record as of April 25, 2012.
  • On February 27, 2012, Lowe's Companies, Inc. announced that for fiscal 2012, it expects total sales to increase 1%-2%, comparable store sales to increase 1%-3% and diluted earnings per share of $1.75-$1.85. The Company reported sales of $48.815 billion for fiscal 2011.

Competitors

Bed Bath & Beyond (NASDAQ:BBBY), Home Depot (NYSE:HD), and Lumber Liquidators Holdings (NYSE:LL) are considered major competitors for Lowe's and the table below provides the key metrics for these companies and the industry.

Lowe

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one-year period.

LOW Chart

LOW data by YCharts

Competitors' Latest Development

  • On August 7, 2012, The Home Depot, Inc. announced a definitive merger agreement for The Home Depot to acquire USHS. USHS, based in Irving, Texas, is currently an exclusive provider of kitchen and bath refacing products and services as well as closet and garage organizational systems to The Home Depot.
  • On July 25, 2012, Lumber Liquidators Holdings Inc announced that based on year-to-date results and current trends, the company now expects to achieve the following in fiscal 2012: Net sales for fiscal 2012 in the range of $750 million to $775 million, up from the previous range of $720 million to $750 million; an increase in comparable store net sales in the mid-single digits; fiscal 2012 earnings per diluted share in the range of $1.30 to $1.42, which is exclusive of any future impact of the share repurchase program.
  • On July 3, 2012, Electrolux AB (Electrolux) announced that The Home Depot will begin selling Electrolux major appliances in the United States. In a staged roll-out, Electrolux's main appliances, under the Frigidaire, Frigidaire Gallery and Electrolux brands, will be available for purchase at The Home Depot.
  • On June 20, 2012, Bed Bath & Beyond Inc. announced that for the second quarter of 2012, it expects modeling net earnings per diluted share to be approximately $0.97 to $1.03 and continues to model net earnings per diluted share to increase by a high single to a low double digit percentage range for all of fiscal 2012, which will be 53 weeks.
  • On June 19, 2012, The Home Depot, Inc. announced that for fiscal 2012, including the 53rd week, it is projecting sales growth of 4.6%. The company reported revenue of $70.395 billion in fiscal 2011.
  • On June 6, 2012, The Home Depot, Inc. reaffirmed its sales and diluted earnings-per-share guidance for fiscal 2012. The company still expects sales to be up approximately 4.6% for the year on a 53-week basis and diluted EPS to be up approximately 17% to $2.90 for fiscal 2012.
  • On June 1, 2012, Bed Bath & Beyond Inc. announced the all cash acquisition of Linen Holdings, LLC for approximately $105 million. Based in Gibbsboro, New Jersey, Linen Holdings, LLC is a privately-held, value-added distributor of bath, bed and table linens, other textile products and amenities to customers in the hospitality, cruise line, food service, healthcare and other industries.
  • On May 17, 2012, The Home Depot, Inc. announced that its Board of Directors declared a first quarter cash dividend of 29 cents per share. The dividend is payable on June 14, 2012, to shareholders of record on the close of business on May 31, 2012.
  • On May 15, 2012, The Home Depot, Inc. announced that based on year-to-date performance, the Company updated fiscal 2012 guidance and now expects sales to be up approximately 4.6% for the year on a 53-week basis.
  • On May 9, 2012, Bed Bath & Beyond Inc. and Cost Plus, Inc. jointly announced that they have entered into a definitive agreement under which Bed Bath & Beyond Inc. will acquire Cost Plus, Inc. in an all cash transaction.
  • On April 25, 2012, Lumber Liquidators Holdings Inc announced that based on the first quarter 2012 results and current trends, the Company now expects to achieve fiscal 2012 net sales in the range of $720-$750 million up from the previous range of $710 million to $740 million.
  • On April 6, 2012, Bed Bath & Beyond Inc. announced that for the first quarter of 2012, it expects modeling consolidated net sales to increase by 4% to 6% and modeling net earnings per diluted share to be approximately $0.79 to $0.83. For fiscal 2012 it expects modeling consolidated net sales to be 5% to 7% and net earnings per diluted share to increase by a high single digit to a low double digit percentage.
  • On March 7, 2012, Lumber Liquidators Holdings Inc announced that for fiscal 2012, it expects $710 million to $740 million in revenue, comparable store sales in the low-single digits, either up or down and earnings per share of about $1.05 to $1.20. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $735 million and EPS of $1.14 for fiscal 2012.
  • On March 6, 2012, The Home Depot, Inc. announced that for fiscal 2012, it expects sales growth of about 4%, low-single-digit comparable sales growth, diluted earnings per share growth of approximately 10% to $2.72 a share before repurchases, diluted earnings per share, after the anticipated share repurchases, will grow approximately 13% to $2.79 a share.
  • On February 23, 2012, The Home Depot, Inc. announced that its Board of Directors declared a fourth quarter cash dividend of $0.29 per share. The dividend is payable on March 22, 2012, to shareholders of record on the close of business on March 8, 2012.
  • On February 22, 2012, Lumber Liquidators Holdings Inc announced that for fiscal 2012, it expects to achieve net sales to be in the range of $710-$740 million, comparable store net sales change in the low single digits, either positive or negative and earnings per diluted share in the range of $1.05 to $1.20. According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $753 million and EPS of $1.22 for fiscal 2012.
  • On February 21, 2012, The Home Depot, Inc. announced that for fiscal 2012, it expects sales growth of approximately 4%, comparable store sales growth of low single-digit, diluted earnings-per-share growth before share repurchases of approximately 10% to $2.72, diluted earnings-per-share growth after anticipated share repurchases of approximately 13% to $2.79. The company reported revenue of $70.395 billion in fiscal 2011 According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $72.55 billion and EPS of $2.77 for fiscal 2012.

Technical Overview


The stock has a market capitalization of $31.50B and is currently trading at $26.51 with a 52-week range of $18.28-$32.29. The stock's year-to-date performance has been 7.17%. It is currently trading above 20 SMA, but below 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Earnings Preview: Lowe's Companies

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