Lowe's Q3 Earnings Top, Comps Rise on Pro Strength, FY25 Sales View Up

Lowe’s Companies, Inc. LOW posted third-quarter fiscal 2025 results with year-over-year growth in both the top and bottom lines. While revenues came in line with the Zacks Consensus Estimate, earnings surpassed the same. The Mooresville, NC-based home improvement retailer posted another quarter of positive comparable sales, reflecting continued traction across Pro, online and home services performance. Management noted that November also started with positive comparable sales, even against last year’s hurricane-related demand. With the Foundation Building Materials (FBM) acquisition completed last month, Lowe’s emphasized that it is positioned to expand its reach within the Pro segment and drive long-term sales and profit improvement. Lowe’s also updated its full-year outlook to incorporate the recently closed FBM acquisition and reflect ongoing macro uncertainty.LOW’s Quarterly Performance: Key Metrics & InsightsLowe’s posted adjusted earnings of $3.06 per share, which beat the Zacks Consensus Estimate of $2.97. The figure marked a 5.9% increase from earnings of $2.89 per share reported in the same period last year. Including costs related to the acquisition of FBM and Artisan Design Group, quarterly earnings came in at $2.88 per share, down from $2.99 in the prior-year period.Lowe's Companies, Inc. Price, Consensus and EPS Surprise Lowe's Companies, Inc. price-consensus-eps-surprise-chart | Lowe's Companies, Inc. QuoteNet sales of $20,813 million met the consensus estimate and increased slightly from $20,170 million in the previous year. The growth was driven by a 0.4% rise in comparable sales, reflecting 11.4% online sales growth, double-digit growth in home services and continued expansion in the Pro segment. We had expected a 1.3% increase in comparable sales.LOW’s Margin & Cost DetailsThe gross margin expanded to 34.2%, up 50 basis points from the prior-year quarter. SG&A expenses increased to 20% of sales, up from 19% in the year-ago period, reflecting acquisition-related items and higher operating costs.As a result, operating income came in at $2,481 million, down from $2,536 million in the year-ago quarter. The operating margin contracted to 11.9% from 12.6%.LOW’s Financial Health SnapshotThis Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $621 million, long-term debt (excluding current maturities) of $37,498 million and a shareholders’ deficit of $10,382 million.For the nine months ended Oct. 31, operating cash flow totaled $8,297 million. During the quarter, the company deployed $8.8 billion for the FBM acquisition and paid $673 million in dividends.As of Oct. 31, 2025, Lowe's operated 1,756 stores, encompassing a total of 195.8 million square feet of retail selling space.A Sneak Peek Into LOW’s FY25 OutlookLowe’s now expects total sales of $86 billion, up from the prior range of $84.5-$85.5 billion. Comparable sales are projected to be flat compared with the earlier expectation of flat to up 1%. The company anticipates an adjusted operating margin of 12.1%, slightly below the previous forecast of 12.2%-12.3%. Net interest expenses are now expected to be approximately $1.4 billion versus the prior $1.3 billion.Lowe’s expects adjusted earnings of about $12.25 per share, within the earlier projected range of $12.20-$12.45. Capital expenditures remain guided at approximately $2.5 billion.Lowe’s Stock Price PerformanceShares of Lowe’s have fallen 9.4% in the past month compared with the industry’s decline of 7.5%.Stocks Looking Red HotThe Chefs' Warehouse, Inc. CHEF, a premier distributor of specialty food products in the United States, currently sports a Zacks Rank #1 (Strong Buy). CHEF has a trailing four-quarter earnings surprise of 14.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for CHEF’s current financial-year sales and EPS calls for growth of 8.1% and 29.3%, respectively, from the year-ago reported numbers.Boot Barn Holdings, Inc. BOOT, the nation’s leading lifestyle retailer of western and work-related footwear, apparel and accessories, currently carries a Zacks Rank #2 (Buy). BOOT has a trailing four-quarter earnings surprise of 5.4%, on average. The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and EPS implies growth of 16.2% and 20.5%, respectively, from the year-ago reported numbers.Ollie's Bargain Outlet Holdings, Inc. OLLI, a leading off-price retailer of brand-name household products, currently carries a Zacks Rank #2. OLLI has a trailing four-quarter earnings surprise of 4.2%, on average. The Zacks Consensus Estimate for Ollie's Bargain’s current financial-year sales and EPS suggests growth of 16.4% and 16.5%, respectively, from the year-ago reported numbers.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lowe's Companies, Inc. (LOW): Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF): Free Stock Analysis Report Ollie's Bargain Outlet Holdings, Inc. (OLLI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks