Home improvement retailer Lowe's Companies Inc. (LOW) is scheduled to report its third-quarter results on November 16, with analysts projecting earnings of $0.24 per share on revenues of $11.28 billion. In the year-ago period, the company reported earnings of $0.33 per share and sales of $11.7 billion.
The Mooresville, North Carolina-based company expects third-quarter earnings to range between $0.21 and $0.25 per share. Third-quarter sales are estimated to decline 2% - 5%, while comps are projected to drop 6% - 10%. The company plans to open nearly 11 new stores reflecting square footage growth of about 5%.
In the preceding second quarter, the company reported net earnings of $759 million or $0.51 per share, a decline from $938 million or $0.63 per share in the year-earlier period, as sales dropped over 5% amid weak consumer sentiment, unseasonable weather and restrained customer spending. Sales for the quarter dropped to $13.84 billion from $14.51 billion in the second quarter of 2008.
Lowe's, in mid-September, reiterated its full year earnings and sales guidance, expecting earnings in a range of $1.13 - $1.21 per share for the fiscal year ending January 29, 2010. Total sales are expected to decline about 3% from the previous year, while comparable store sales are estimated to decrease 7% - 9%. Twenty three Wall Street analysts have a consensus earnings estimate of $1.20 per share on revenues of $46.84 billion.
For fiscal year 2010 ending January 28, 2011, Lowe's projects earnings to range between $1.24 and $1.34 per share, while analysts expect earnings of $1.34 per share. Total sales are expected to rise about 3% - 4% and same-store sales are estimated to increase about 1%. In fiscal 2010, store opening costs are expected to be about $30 million and the company plans to open 35 - 45 stores in 2010 reflecting total square footage growth of about 2% - 2.5%.
Among Lowe's' rivals, Home Depot Inc. (HD), the world's largest home improvement retailer, is set to publish its third-quarter results before the market opens Tuesday, as analysts are projecting earnings of $0.36 per share on revenues of $16.28 billion. In the year-earlier quarter, the company reported earnings of $0.45 per share and sales of $17.8 billion.
While reporting second-quarter numbers, Home Depot raised its fiscal 2009 earnings per share forecast, currently expecting per share earnings from continuing operations to be flat to up 7% from last year, versus its earlier guidance of flat to down 7% from last year. Adjusted earnings per share from continuing operations for 2009 are now projected to decline by 15% - 20%, versus prior forecast of 20% - 26% decline. Home Depot also confirmed that it believes that fiscal 2009 sales will be down about 9% from the prior year.
Smaller peer, Lumber Liquidators Inc. (LL) posted third-quarter net income of $7.76 million or $0.28 per share, higher than the previous year's net income of $5.46 million or $0.20 per share, reflecting improved gross margins and a 14.2% rise in sales. Quarterly sales increased to $140.52 million from $123.06 million in the year ago period.
Lowe's shares, which have been trading between $13.00 and $24.09 in the past 52 weeks, closed Friday's trading session at $21.85, up 38 cents or 1.77%, on a volume of 17.5 million shares.
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