Earnings Season| LOW weak top line 1Q lowers FY guidance

DividendWave
2023-05-24

$Lowe's(LOW)$ LOW weak top line 1Q lowers FY guidance

Revenue -5.5% (comp -4.3%)

Net Income -3%

Dil. EPS +7% (+4.6% excl. Canadian business sale)

OCF -29%

FCF -35%

FY guidance

sales $87 to $89 B (previously $88 to $90 B)

comp sales -2% to -4% (previous 0% to -2%)

espect for bridging to previous guidance (it should be standard for all companies, but not all do it)

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LOW Canada business exit impact

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Some Info on LOW store count

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LOW aggressive buyback continues

Another $2.1 B in 1Q

Roughly half of the $4 B the same Q a year ago

Even if no further buybacks are done (or shares issued) FY23 will have a 5% share reduction

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LOW debt keeps increasing as it finances this aggressive (beyond FCF) share reduction

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LOW balance sheet has a shareholder deficit (as opposed to equity) due to these buybacks

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