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Analyst Estimates: Here's What Brokers Think Of Lowe's Companies, Inc. (NYSE:LOW) After Its First-Quarter Report

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. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Lowe's Companies

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Following last week's earnings report, Lowe's Companies' 36 analysts are forecasting 2025 revenues to be US$84.5b, approximately in line with the last 12 months. Statutory earnings per share are forecast to shrink 3.1% to US$12.20 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$84.4b and earnings per share (EPS) of US$12.16 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

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There were no changes to revenue or earnings estimates or the price target of US$251, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. 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. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$251, with the latest estimates not enough to have an impact on their price targets.

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.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Lowe's Companies (at least 1 which shouldn't be ignored) , and understanding these should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.