Lowe’s Third Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Lowe’s Cos (NYSE:LOW) will unveil its latest earnings on Monday, November 19, 2012. Lowe’s Companies is a home improvement retailer offering products to homeowners, renters, and commercial business customers.

Lowe’s Cos Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 35 cents per share, no change from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 39 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 35 cents during the last month. For the year, analysts are projecting net income of $1.66 per share, a decline of 1.8% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the second quarter, the company reported profit of 65 cents per share versus a mean estimate of net income of 70 cents per share. In the first quarter, the company beat estimates by one cent.

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Stock Price Performance: Between August 20, 2012 and November 13, 2012, the stock price rose $5.71 (21.7%), from $26.26 to $31.97. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 15, 2012, when shares rose for eight straight days, increasing 10.2% (+$2.85) over that span. It saw one of its worst periods between May 2, 2012 and May 15, 2012 when shares fell for 10 straight days, dropping 9.6% (-$3.07) over that span.

A Look Back: In the second quarter, profit fell 10% to $747 million (64 cents a share) from $830 million (64 cents a share) the year earlier, missing analyst expectations. Revenue fell 2% to $14.25 billion from $14.54 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.29 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Analyst Ratings: With 12 analysts rating the stock a buy, none rating it a sell and 10 rating the stock a hold, there are indications of a bullish stance by analysts. Over the last three months, the stock’s average rating has increased from hold to moderate buy.

Wall St. Revenue Expectations: On average, analysts predict $11.9 billion in revenue this quarter, a rise of 0.4% from the year-ago quarter. Analysts are forecasting total revenue of $50.06 billion for the year, a decline of 0.3% from last year’s revenue of $50.21 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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