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Lowe's Q1 Adj. EPS Miss Estimates; Slashes FY19 Adj. EPS Outlook - Quick Facts

Home improvement retailer Lowe's Companies, Inc. (LOW) reported Wednesday a first-quarter net earnings of $1.05 billion or $1.31 per share, higher than $988 million or $1.19 per share in the prior-year quarter.

Excluding a tax benefit and operating costs associated with the Mexico retail operations, adjusted net earnings for the quarter was $1.22 per share.

On average, 27 analysts polled by Thomson Reuters expected the company to report earnings of $1.34 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter grew 2.2 percent to $17.74 billion from $17.36 billion last year, and comparable sales increased 3.5 percent. Comparable sales for the U.S. home improvement business increased 4.2 percent. Analysts expected sales of $17.70 billion for the quarter.

As of May 3, 2019, Lowe's operated 2,002 home improvement and hardware stores in the United States and Canada representing 208.8 million square feet of retail selling space.

Looking ahead to fiscal 2019, the company slashed its adjusted earnings guidance to a range of $5.45 to $5.65 per share from the prior outlook range of $6.00 to $6.10 per share.

However, the company continues to project total sales for the full year to increase about 2 percent, and comparable sales to increase about 3.0 percent.

The Street is looking for earnings of $6.05 per share on sales growth of 1.6% to $72.44 billion for the year.

"We are still in the early stages of our transformation, and with the changes we are putting in place, we expect to deliver improved gross margin performance over the balance of the year," said Marvin Ellison, Lowe's president and CEO.

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