Lowe's Q4 Profit Beats Market, Sees FY25 Results Below Street; Stock Up In Pre-market - Update

Lowe's Companies

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(RTTNews) - Home improvement major Lowe's Companies, Inc. (LOW) on Wednesday issued its forecast for fiscal 2025, projecting earnings and sales below the market. In its fourth quarter, profit increased and beat market estimates, despite weak net sales.

In pre-market activity on the NYSE, Lowe's shares were gaining around 2.7 percent to trade at $249.00.

Marvin Ellison, Lowe's chairman, president and CEO, said, "We remain confident in the long-term strength of the home improvement industry, and we are equally confident in our strategy to capitalize on the expected recovery."

For fiscal 2025, the company projects earnings per share of approximately $12.15 to $12.40, and total sales of $83.5 billion to $84.5 billion.

The Wall Street analysts, on average, expect the company to record earnings of $12.48 per share on sales of $84.77 billion for the year.

In fiscal 2024, earnings per share were $12.23 and net sales were $83.67 billion.

Operating margin is expected to be 12.3 percent to 12.4 percent, and comparable sales are expected to be flat to up 1 percent as compared to the prior year.

The company said the outlook reflects continued near-term uncertainty in the home improvement market.

In its fourth quarter, Lowe's net earnings totaled $1.125 billion or $1.99 per share, compared with $1.020 billion or $1.77 per share last year.

Adjusted earnings were $1.93 per share for the period. Analysts had expected the company to earn $1.84 per share.

The company's sales for the period fell 0.3 percent to $18.553 billion from $18.602 billion last year. The Street expected sales of $18.29 billion.

Comparable sales for the quarter increased 0.2 percent, driven by high-single-digit Pro and online comparable sales, strong holiday performance, and rebuilding efforts in the wake of recent hurricanes. These were partially offset by continued near-term pressure in DIY discretionary spending.

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