[updated: 09/10/2021] Loews Stock Update
Lowe (NYSE: LOW) recently reported a better-than-expected second-quarter report. In this report, both earnings and GAAP earnings per share were higher than expected. The company’s revenue was $ 27.6 billion, 3% above the consensus estimate of $ 26.7 billion and 2% above Trephis’ estimate. EPS was $ 4.25, 7% above the consensus and 5% above the estimate. Lowe’s revenue increased slightly year-over-year (-1.6% vs. -1.9% consensus) as it exceeded comparable sales forecasts for the second quarter (-1.6% vs. -1.9% consensus). )-Consider a rigorous comparison that the company compared to last year. However, company-wide same-store sales increased 32%, up 21% on a two-year basis. It should be noted that the strong year-over-year growth of 21% in Lowe professionals, the 10% increase in installation services, and the 7% surge in e-commerce sales also contributed to profits in the second quarter of 2021. Renovation retailers also achieved strong revenues, up 14% year-on-year, in the second quarter due to significant operating margin growth.
Lowe’s has raised its full-year earnings outlook from the previous $ 86 billion forecast to $ 92 billion. This 2021 revenue guidance represents a 28% increase from pre-pandemic revenue in 2019. The company also expects a full-year operating margin to improve from 10.8% in 2020 to 12.2%. Second quarter release. In 2021, sales are projected to be $ 93 billion, up 4% year-on-year, compared to the slight decline in previous estimates. Looking at revenue, EPS is projected to be $ 11.34, compared to a previous estimate of $ 10.05. Due to changes in revenue and revenue forecasts Loews Rating Based on the 2021 forecast EPS of 11.34 times and the price-earnings ratio of 18.6 times, it is $ 210 per share, which is 2% higher than the current market price.
[updated: 08/17/2021] Loews Q2 Pre-Revenue
Lowe’s (NYSE: LOW) will report its second quarter results on Wednesday, August 18th. The company’s stock is expected to perform better in the second quarter and beyond, as earnings and earnings may be slightly above the consensus estimate. Renovation retailers have invested quickly and heavily to build digital capabilities to meet the surge in demand during a pandemic. Consumers were still investing in their homes, and Loews saw sales grow among home professionals in the first quarter as well. In fact, stimulus checks supported expensive projects, and the company saw early demand for popular spring purchases such as patio items and grills. The company did not provide specific guidance, but expects to continue to benefit from strong demand for renovation products and building materials in the second quarter. Our forecast is that Rowe’s valuation is $ 201 per share, almost 4% higher than the current market price of $ 193.See our interactive dashboard analysis Rowe Pre-Revenue: What do you expect from Q2? For more information.
(1) Revenue expected to slightly exceed consensus estimates
Trefis estimates Lowe’s revenue in the second quarter of 2021 to be around $ 27 billion, slightly higher than the consensus estimate of $ 26.7 billion. Lowe’s achieved record sales growth in 2020. This was due to the addition of more than $ 17 billion year-on-year to the revenue base and the surge in profits throughout the year. In fact, the company reported strong equivalent sales growth of 26.1% in 2020, outpacing Home Depot.
2) EPS is likely to exceed consensus estimates
Lowe’s earnings per share for the second quarter of 2021 are expected to be $ 4.04 per Trefis analysis, slightly higher than the consensus estimate of $ 3.99. As a result of the significant increase in revenue, the company’s operating margin in the first quarter of 2021 was 320 basis points higher than in the first quarter of 2020, but the safety, labor costs and supply chain associated with Covid-19. The cost is high. In fact, during this period, the company’s operating profit increased significantly by 63% year-on-year. In addition, Loews generated $ 2.3 billion in net income in the first quarter, which was $ 1.3 billion in the year-ago quarter, but revenue increased from $ 1.76 in the year-ago quarter to $ 3.21. This pandemic has changed the way customers shop at Lowe’s. This was revealed by a 36.5% year-on-year increase in sales at Lowes.com and a 146% increase over the two years.
For the full year 2021, Rowe’s net profit margin is expected to increase by 180 basis points from 6.5% in 2020 to 8.3% in 2021. Lowe’s revenue will increase net income by $ 1.6 billion year-on-year to $ 7.4 billion in 2021. This could increase EPS from $ 7.77 in 2020 to about $ 10.05 in 2021.
(3) Estimate of stock price higher than the current market price
According to Loews’s assessment, the 2021 EPS estimate is about $ 10.05 and the price-earnings ratio will be 20 times higher. This corresponds to a price of 201, which is 4% higher than the current market price.
It is helpful to see how they stack up for further comparison between peer groups. A LOW inventory comparison with a peer shows how Lowe compares to a peer for important metrics.
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