Earnings Update: Lowe's Companies, Inc. (NYSE:LOW) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

Shareholders might have noticed that Lowe's Companies, Inc. (NYSE:LOW) filed its quarterly result this time last week. The early response was not positive, with shares down 6.3% to US$221 in the past week. Lowe's Companies reported US$21b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$3.06 beat expectations, being 3.5% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Lowe's Companies

Taking into account the latest results, Lowe's Companies' 36 analysts currently expect revenues in 2025 to be US$84.5b, approximately in line with the last 12 months. Statutory earnings per share are forecast to decrease 3.1% to US$12.20 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$84.4b and earnings per share (EPS) of US$12.16 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$251. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Lowe's Companies analyst has a price target of US$290 per share, while the most pessimistic values it at US$201. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lowe's Companies' past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.4% by the end of 2025. This indicates a significant reduction from annual growth of 5.0% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Lowe's Companies is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Lowe's Companies analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Lowe's Companies has 2 warning signs (and 1 which can't be ignored) we think you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.