NYSE$LOW

Lowe's Companies Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Lowe's reported a decrease in diluted EPS and comparable sales for the fourth quarter of fiscal 2022, but an increase in adjusted diluted EPS and total sales.

Lowe's reported net earnings of $957 million and diluted EPS of $1.58 for the fourth quarter ended Feb. 3, 2023. Adjusted diluted EPS increased 28% to $2.28. Total sales for the fourth quarter were $22.4 billion, up from $21.3 billion in the prior year, despite a 1.5% decrease in comparable sales.

  • Diluted EPS for Q4 2022 was $1.58, a decrease from $1.78 in Q4 2021.
  • Adjusted diluted EPS for Q4 2022 increased 28% to $2.28.
  • Total sales for Q4 2022 were $22.4 billion, an increase from $21.3 billion in Q4 2021.
  • Comparable sales for Q4 2022 decreased by 1.5%, with U.S. home improvement comparable sales decreasing by 0.7%.

Headline financials

Total Revenue

$22.4B

Previous: $22.4B+0.0%
EPS (adj)

$2.28

Previous: $2.28+0.0%
Capital Expenditures

-$620M

No prior period
Free Cash Flow

$488M

No prior period
Net Income

$957M

Previous: $958M-0.1%
Operating Income

$1.7B

Previous: $1.7B+0.0%
Gross Profit

$7.26B

Previous: $7.26B+0.0%

Revenue & EPS history

Lowe's · Revenue · Quarterly

$22.4B

Q4 2023+0%vs Q4 2022
Beat estimate in 7 of 11 quarters(64%)
ActualEstimate

Forward guidance

For fiscal year 2023, Lowe's expects total sales to be between $88 billion and $90 billion, with comparable sales ranging from flat to down 2%. Operating income as a percentage of sales is projected to be between 13.6% and 13.8%, and diluted earnings per share are expected to be between $13.60 and $14.00.

Tailwinds

  • Total sales expected to be approximately $88 – $90 billion.
  • Operating income as a percentage of sales (operating margin) of 13.6% to 13.8%.
  • Diluted earnings per share of $13.60 to $14.00.
  • Capital expenditures of up to $2 billion.
  • Company continues to make strides on its Total Home strategy.

Headwinds

  • Comparable sales expected to be flat to down -2% as compared to prior year.
  • Fiscal 2023 is a 52-week year, compared to a 53-week year in 2022, which will impact year-over-year comparisons.
  • The outlook does not account for potential future economic volatility.
  • No specific guidance on potential impacts from inflation or supply chain disruptions.
  • The outlook is based on a 52-week year, while the prior year was 53 weeks, which could be perceived as a negative comparison point.

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 Q4 2023

Historical avgQ4 2023

+0.4%

Avg return

Earnings day

+1.5%

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%-1.8%+1.3%
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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