NYSE$LOW

Lowe's Companies Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Consolidated comparable sales decreased and EPS increased.

Lowe's reported Q2 2022 results with net earnings of $3.0 billion and diluted EPS of $4.67. Total sales were $27.5 billion, and comparable sales decreased by 0.3%. The company is awarding an incremental bonus of $55 million to hourly front-line associates.

  • Consolidated comparable sales decreased 0.3%.
  • U.S. comparable sales increased 0.2%.
  • Second quarter diluted EPS was $4.67.
  • Pro customer sales increased 13%.

Headline financials

Total Revenue

$27.5B

Previous: $27.6B-0.3%
EPS (adj)

$4.67

Previous: $4.25+9.9%
Comparable Sales

-0.3%

Previous: -1.6%+81.3%
Capital Expenditures

-$687M

Previous: -$846M+18.8%
Free Cash Flow

$2.31B

Previous: $2.17B+6.1%
Net Income

$2.99B

Previous: $3.02B-0.9%
Operating Income

$4.23B

Previous: $4.21B+0.5%
Gross Profit

$9.13B

Previous: $9.31B-1.9%
Cash & Equivalents

$1.48B

Previous: $4.84B-69.3%
Total Assets

$46.7B

Previous: $49.4B-5.4%
R&D Expense

$0.00

Previous: $0.00

Revenue & EPS history

Lowe's · Revenue · Quarterly

$27.5B

Q2 2022-0.3%vs Q2 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

The company now expects full year 2022 total and comparable sales toward the bottom end of its outlook range, and expects operating income and diluted EPS toward the top end of its outlook range.

Tailwinds

  • Total sales of $97 billion to $99 billion, including the 53rd week
  • 53rd week expected to increase total sales by approximately $1.0 billion to $1.5 billion
  • Comparable sales expected to range from a decline of -1% to an increase of 1%
  • Gross margin rate up slightly compared to prior year
  • Diluted earnings per share of $13.10 to $13.60

Headwinds

  • Total sales of $97 billion to $99 billion, including the 53rd week
  • 53rd week expected to increase total sales by approximately $1.0 billion to $1.5 billion
  • Comparable sales expected to range from a decline of -1% to an increase of 1%
  • Interest expense of $1.1 to $1.2 billion
  • Effective income tax rate of approximately 25%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.4%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+1.7%

Avg return

30 days after

53%

35 / 66 earnings

Positive

+16.5%

Q4 2019

Best reaction

-6.5%

Q1 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%
Q4 2025-3.8%-7.7%-17.3%
Q3 2025+3.4%+4.2%+9.5%
Q2 2025+0.3%+1.0%+3.4%
Q1 2025-1.6%-4.4%-8.0%
Q4 2024+1.9%+1.6%-5.8%
Q3 2024-3.2%-2.6%-10.0%
Q3 2023+0.2%+3.0%+4.2%
Q2 2024-0.3%+2.8%+7.3%
Q1 2024-3.5%-6.1%-0.7%
Q1 2023-1.5%+0.5%-6.7%
Q4 2023+2.7%+1.6%+14.1%
Q2 2023+4.4%+2.5%-3.2%
Q4 2022+0.4%+5.5%+6.0%
Q3 2022-0.2%+0.7%-1.3%
Q2 2022+1.1%-1.9%-10.4%
Q1 2022-3.2%-4.0%-11.1%
Q4 2021-3.1%-9.7%-11.4%
Q3 2021+1.1%+3.1%+1.4%
Q2 2021+11.2%+13.1%+14.7%
Q1 2021+0.3%-1.1%-3.0%
Q4 2020+0.5%+6.8%+13.6%
Q3 2020-6.4%-3.9%+2.1%
Q2 2020+0.4%+4.9%+1.4%
Q1 2020+3.2%+4.6%+14.5%
Q4 2019+16.5%+31.1%+43.1%
Q3 2019+0.9%+2.9%+4.4%
Q2 2019-0.2%+2.2%-5.2%
Q1 2019+3.8%+3.7%+10.6%
Q4 2018+2.8%+5.6%+2.9%
Q3 2018-1.0%-0.9%+3.9%
Q2 2018-0.3%+0.8%+1.9%
Q1 2018+0.9%+2.7%-2.1%
Q4 2017-2.6%+0.6%-4.3%
Q3 2017-6.4%-2.8%+5.3%
Q2 2017+3.8%+5.2%+10.2%
Q1 2017-2.1%-1.0%-3.6%
Q4 2016-0.5%+0.1%+4.1%
Q3 2016-0.9%+1.6%+0.2%
Q2 2016-0.6%-1.3%-5.5%
Q1 2016-0.1%-0.4%-1.5%
Q4 2015+1.4%
Q3 2015-2.6%
Q2 2015-0.2%
Q1 2015+0.7%
Q4 2014-0.5%
Q3 2014+1.8%
Q2 2014+0.8%
Q1 2014+0.3%
Q4 2013+1.0%
Q3 2013+0.1%
Q2 2013+0.3%
Q1 2013-6.5%
Q4 2012+0.9%
Q3 2012-2.3%
Q2 2012-1.3%
Q1 2012+4.8%
Q4 2011-1.0%
Q3 2011+1.2%
Q2 2011-2.7%
Q1 2011-2.2%
Q4 2010+0.9%
Q3 2010+9.8%
Q2 2010+3.8%
Q1 2010+0.6%
Q4 2009-0.3%

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