Lowe’s Companies Inc. (NYSE:LOW) , the world’s second largest home improvement retailer, is scheduled to report its second-quarter 2011 financial results on Monday, August 15, 2011. The current Zacks Consensus Estimate for the quarter is 67 cents a share. For the quarter under review, revenue is $14,743 million, according to the Zacks Consensus Estimate.
First-Quarter 2011, a Synopsis
On May 16, 2011, Lowe’s posted lower-than-expected first-quarter 2011 results, reflecting sluggish economic recovery and difficult comparison on account of government stimulus programs that benefited the prior-year quarter.
The quarterly earnings of 34 cents a share missed the Zacks Consensus Estimate of 36 cents and remained flat compared with the prior-year quarter. The quarterly earnings was at the lower end of the company’s guidance range of 34 cents to 38 cents a share.
Net sales for the quarter inched down 1.6% to $12,185 million from the year-ago quarter, and also fell short of the Zacks Consensus Estimate of $12,515 million.
Second-Quarter & Fiscal 2011 Guidance
Management now expects sales to increase approximately 4% in the second quarter and fiscal 2011, respectively.
Second-Quarter 2011 Consensus
Analysts considered by Zacks, expect Lowe’s to post second-quarter 2011 earnings of 67 cents a share, reflecting a growth of 15.5% from the year-ago quarter. The current Zacks Consensus Estimates for the quarter range from a low of 63 cents to a high of 69 cents.
Zacks Agreement & Magnitude
Of the 23 analysts following the stock, four analysts revised the estimate downwards in the last 30 days. However, it had no material impact on the Zacks Consensus Estimate for second-quarter 2011. In the last 7 days, three analysts revised the estimate in the downward direction leaving the Zacks Consensus Estimate unchanged.
Mixed Earnings Surprise History
With respect to earnings surprises, Lowe’s has topped as well as missed the Zacks Consensus Estimate over the last four quarters in the range of negative 5.6% to positive 16.7%. The average remained at 3.2%. This suggests that Lowe’s has beaten the Zacks Consensus Estimate by an average of 3.2% in the trailing four quarters.
Lowe’s Holds Zacks #4 Rank
Currently, we have a ‘Neutral’ rating on the stock. However, Lowe’s holds a Zacks #4 Rank, which translates into a short-term ‘Sell’ recommendation.
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