CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Lowe's Q4 results: shares up 2% after earnings revenue misses estimates

Lowe's stock is up despite missing Wall Street's earnings estimates.

Lowe’s stock is up despite a mixed Q4 earnings report. Lowe’s Q4 results fell below Wall Street expectations.

Lowe’s earnings: key figures

Earnings per share (EPS) $0.80
Revenue $15.65 billion
Net income $554 million
Same store sales +2.4 %

Lowe's earnings

Lowe’s Q4 earnings per shares (EPS) were $0.80, slightly better than expectations. Lowe’s Q4 revenue was $15.65 billion, surpassing its total from 2018. However, it was still lower than financial experts’ estimates of $15.74 billion.

The corporation’s chief executive officer, (CEO), Marvin Ellison, blames Lowe’s diminished revenue on bad weather and a decline in the US and Canadian housing markets. Q4 results were mixed, there was positive news with the company’s sales. The retailer’s same store sales increased by 2.4% and stores open for a year saw purchases jump by 1.7%.

What do Lowe’s Q4 results mean for its share price?

Lowe’s Q4 results mean an increase in its share price. Lowe’s share price has increased despite a mixed earnings report because of encouraging Q1 guidance from the retailer, strong same store sales, and revenue catching up to its competitor, Home Depot.

How do Lowe’s Q4 results compare to other home improvement retailers?

Lowe’s Q4 results were better than Home Depot's earnings. Lowe’s EPS and revenue were high, even if they fell beneath Wall Street expectations. Home Depot’s EPS and revenue dropped farther than Lowe’s and beneath financial experts’ predictions.

While Home Depot focuses more on consumers’ home construction work, Lowe’s sales improved from customers buying products for a wider range of small home improvement projects.

What is Lowe’s dividend forecast?

Lowe’s dividend forecast is optimistic, with the corporation projecting 2019 earnings per share between $6 and $6.10. The retailer predicts total store sales to rise by 2% and same store purchases to increase by 3%.

Ellison predicted that despite the Canadian housing market slowdown, he thought the stores would improve its sales over a longer period.

‘We anticipate continued weakness in the Canadian housing market in the near-term, but remain confident in our market position in Canada and the long-term potential of that business,’ said Ellison.

Ellison also had an upbeat outlook for Q1 results in the US.

‘We are encouraged by an improved comparable sales progression through the fourth quarter, culminating in U.S. home improvement comp growth of 5.8% in January,' said Ellison.

'Though we have remaining work to do, we are pleased with the results we are seeing in early spring categories, which is evidence that we are focused on the right actions at this stage of our transformation,’ added Ellison.

Home improvement retailers like Lowe’s are struggling to increase revenue despite a downturn in the US housing market. While Lowe stock is rising, investors will be watching to see if Lowe’s Q4 results will have a long-term positive effect on its share price.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.