Lowe’s Earnings: Tumultuous Macro Weighs on Near-Term Results but Fails to Sway Our Long-Term View

Wide-moat Lowe’s fiscal 2024 first-quarter marks included little surprise—$21.4 billion in sales and $3.06 in diluted EPS aligned closely with our $21.1 billion and $3.08 prerelease estimates, respectively—prompting management to reaffirm its full-year outlook of $84 billion-$85 billion in revenue and 12.6%-12.7% in operating margin. As the reiterated guidance squares with our $84.3 billion and 12.7% respective forecasts, our $211 fair value estimate shouldn’t see a material change beyond time value. Even with a 3% drop in shares following the report, shares continue to appear a touch rich relative to our existing intrinsic valuation.