Lowe’s Beat Q4 Estimates, but Outlook Falls Short of Analysts’ Forecast (LOW)

NYSE: LOW) handed better than expected fiscal fourth-quarter results as revenue was partially aided by rebuilding efforts after the super storm Sandy; however, the Company’s outlook on the current fiscal year disappointed investors.

Shares traded almost flat by midday trade.

Lowe’s, which felt the heat on its financials amid rising competition from larger rival Home Depot Inc. (NYSE: HD), is in the midst of an overhaul. The Company shuttered poorly performing stores, deferred new stores opening plans, slashed jobs, made its supply-chain more efficient and invested in stores to bring about a makeover and focused more on e-sales business.

In order to boost sales, the Company has also introduced an everyday low prices scheme along with products that are directed at definite geographic markets.

In addition, in order to smoothen customers’ purchase decision, Lowe’s has equipped its store workers with Apple iPhones to assist shoppers in researching products, test out rivals’ prices and make purchasing decisions.

For the fiscal fourth quarter, the Mooresville, North Carolina-based Company reported adjusted or non-GAAP earnings of 26 cents a share, compared to 29 cents a share, in the year earlier quarter. In the fiscal 2011, the company had a one extra working week.

Revenue during the period fell contracted 5% to $11 billion from $11.63 billion, in the same period of last year.

Analysts polled by Thomson Reuters had most recently forecasted earnings of 23 cents a share on revenue of $10.84 billion.

Same-store-sales, a key measure on retail chain’s performance since it excludes sales results from those stores that were closed or opened less than 12 months ago, rose 1.9% in the fiscal fourth quarter.

Looking ahead at fiscal 2013, the Company expects earnings of $2.05 a share, 5 cents short of what analysts were expecting for, according to a data compiled by Thomson Reuters.

Lowe’s expect sales to climb by about 4% in the fiscal 2013 to $50.52 billion while same-store-sales are expected to rise by 3.5%, year-on-year.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.