Shares fall over 5% as home-improvement company faces challenges
- Lowe’s cuts its full-year outlook due to pressure on discretionary spending
- Fiscal third-quarter net earnings of $1.77 billion, beating analysts’ expectations
- Total sales fell to $20.5 billion, below the FactSet consensus of $20.9 billion
- Comparable sales dropped 7.4% due to a pullback in do-it-yourself discretionary spending
- Lowe’s now anticipates $86 billion in total sales for the full year, lower than previous forecast
- Adjusted earnings per share for the full year expected to be around $13.00
Lowe’s Cos. Inc. shares were down more than 5% in premarket trading after the company reduced its full-year outlook and highlighted the impact of discretionary spending pressure. The company reported fiscal third-quarter net earnings of $1.77 billion, beating analysts’ expectations. However, total sales fell to $20.5 billion, below the FactSet consensus. Comparable sales dropped 7.4%, which Lowe’s attributed to a decline in do-it-yourself discretionary spending. As a result, the company now expects $86 billion in total sales for the full year, lower than its previous forecast. Adjusted earnings per share for the full year are projected to be around $13.00.
Factuality Level: 8
Factuality Justification: The article provides specific financial information about Lowe’s Cos. Inc., including their fiscal third-quarter net earnings, total sales, and comparable sales. It also includes a quote from the Chief Executive regarding the impact of DIY pressure on their performance. The information is supported by data and does not contain any obvious bias or misleading information.
Noise Level: 7
Noise Justification: The article provides relevant information about Lowe’s Cos. Inc.’s financial performance and outlook. It includes details about the company’s net earnings, total sales, and comparable sales. However, it lacks analysis or insights into the long-term trends or consequences of the company’s performance. It also does not provide any evidence or data to support its claims. Overall, the article is focused on reporting the facts without offering much depth or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Lowe’s Cos. Inc. (LOW) shares
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses Lowe’s Cos. Inc.’s financial performance and outlook. The company’s shares are falling in premarket trading after it trimmed its full-year outlook and cited pressure on discretionary spending. However, there is no mention of an extreme event.
Public Companies: Lowe’s Cos. Inc. (LOW)
Key People: Marvin Ellison (Chief Executive)
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