Earnings previews: Lowe's and Home Depot

Posted Feb 24th 2008 2:10PM by Trey Thoelcke
Filed under: Earnings Reports, Home Depot (HD), Lowe's Cos (LOW)

America's largest home improvement superstores, Lowe's Companies Inc. (NYSE: LOW) and Home Depot Inc. (NYSE: HD) are scheduled to report earnings this coming week. Here's a quick peek at them ahead of results.

Lowe's has missed earnings expectations only once in the past five quarters. When the company reported third-quarter fiscal 2008 results back in November, earnings came to 43 cents per share, beating the consensus forecast of analysts polled by Thomson Financial by two cents. For the current quarter, analysts expect only 25 cents per share, compared to 40 cents in the year-ago quarter.

The company's earnings per share growth forecast for the next three to five years is 19.1%, less than the industry average of 31.6%. The analysts' consensus recommendation is to buy Lowe's, though 10 of 21 analysts rate it a hold. Shares are up from the 52-week low of $19.94 in January, and closed Friday at $23.59.

For news on Lowe's and its rivals that could influence the earnings results, see BloggingStocks' Lowe's coverage.

Home Depot has beat earnings expectations in only one of the past six quarters. When it reported third-quarter fiscal 2008 results back in November, its 59 cents per share earnings missed the consensus forecast of analysts surveyed by Thomson Financial by a penny. For the current quarter, analysts expect 43 cents per share, down from 50 cents in the year-ago quarter.

Home Depot's earnings per share growth forecast for the next three to five years is 11.6%, less than the industry average of 31.6%. The analysts' consensus recommendation is to buy Home Depot, though 12 of 22 analysts rate it a hold. Shares closed Friday at $27.77, up from the 52-week low of $23.77 in January.

For news about Home Depot and its rivals that could influence the earnings results, see BloggingStocks' Home Depot coverage.

Lowe's is scheduled to report Monday, Home Depot on Tuesday.

Visit AOL Money & Finance for more earnings coverage.

Tags: earnings, earnings reports, HD, Home Depot, home improvement, housing slump, LOW, Lowe's, superstores

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Reader Comments (Page 1 of 1)

2-24-2008 @ 8:46PM

waca107 said...

Lowes and Home Depot build stores drive out established Lumber company's, Then carry only products that make them profits form homeowners Cheap materiels that contractors dont need.