FINWIRES · TerminalLIVE
FINWIRES

Lowe's Resets FY Outlook as Softer Q2 Trends Prompt Caution, RBC Says

By

Lowe's (LOW) posted softer fiscal Q2 comparable sales and moved its full-year guidance to the low end of its prior range, a reset largely anticipated by investors. RBC Capital Markets said Wednesday in a report.

As the company navigates a tougher demand backdrop and rising cost pressures, the revised outlook "feels appropriately prudent" and may improve the stock's appeal given its valuation discount to rival Home Depot (HD), the report said.

RBC cut Lowe's Q3 comparable-sales estimate to growth of 0.5% from growth of 1% and lowered its adjusted EPS estimate to $2.93 from $3.02.

Lowe's "flattish" revenue outlook may seem conservative, though cost pressures are likely to increase, the report said.

RBC expects 2026 comparable sales growth of 0.3%, down from 0.6% growth previously, and projects 2027 comparable-sales growth of 1%, down from its prior 1.8% estimate.

RBC maintained its sector-perform rating on Lowe's stock and its $231 price target.

Price: $217.95, Change: $-2.05, Percent Change: -0.93%

Related Articles

Wire

Yojee Completes Mosaic Everest Founding Partner Group, Reaches 12 Total Customer Agreements; Shares Down 4%

Yojee (ASX:YOJ) completed its Mosaic Everest Founding Partner group, with all four positions now signed following Mosaic's commercial launch, bringing total customer agreements on the freight forwarding and customs platform to 12, according to a Thursday Australian bourse filing.The company said the 12 agreements comprise four Everest Founding Partners on 36-month founder terms, three Ignition Partners on two-year founder terms, three standard customers, and two early-adopter agreements, with revenue under all agreements usage-based and recognized progressively as onboarding is completed.The company said revenue under the contracts is not considered material at this stage given the usage-based structure and early stage of onboarding.The company's shares fell 4% in recent Thursday trade.

ASX:YOJ
Wire

Update: Zip Co Fiscal 2026 Underlying Earnings, Revenue Up; Shares Up 12%

(Updates to add stock movement in the headline and the fourth paragraph)Zip Co (ASX:ZIP) logged AU$0.0916 in underlying earnings per basic share for the fiscal 2026, compared with AU$0.0386 a year ago, a Thursday filing showed.For the 12 months ended June 30, revenue was AU$1.34 billion versus AU$1.07 billion previously, the Australia-listed digital financial services company added.The company expects fiscal 2027 group revenue margin of about 8% and group cash earnings before taxes, depreciation, and amortization of AU$340 million.Its shares surged 12% in recent trading on Thursday.

ASX:ZIP
Wire

Nordson Fiscal Q3 Adjusted Earnings, Revenue Rise; 2026 Outlook Raised

Nordson (NDSN) reported fiscal Q3 non-GAAP net income late Wednesday of $3.25 per diluted share, up from $2.73 a year earlier.Analysts polled by FactSet expected $3.09.Revenue for the quarter ended July 31 was $817.7 million, up from $741.5 million a year earlier.Analysts expected $779.5 million.For fiscal 2026, the company raised its adjusted EPS guidance to $11.80 to $12.00 from the previous range of $11.30 to $11.80.Revenue projection for the fiscal year was also increased to $3.035 billion to $3.075 billion from $2.93 billion to $3.01 billion previously.Analysts expect EPS of $11.60 on revenue of $2.98 billion.Shares rose around 4% in after-hours trading.

$NDSN