Lowe's Companies (NYSE: LOW) recently reported its fiscal second-quarter results. This covered the period that ended on July 31. What do the company's sales and earnings tell us about the company's long-term growth prospects and total return potential? Let's take a closer look at the results.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
There's no getting around it. Lowe's second-quarter sales were weak. Its same-store sales (comps) were essentially flat, growing a scant 0.2%. Management blamed the tepid sales result largely on macroeconomic pressures that have affected do-it-yourself homeowners' willingness to take on projects. Positively, sales to professional contractors, an area of focus, were strong.
In the near term, management doesn't expect sales growth to pick up. It now anticipates flat comps for the year, down from its previous expectation of 0% to 2%.
Still, shareholders can confidently rely on dividends. Lowe's has raised the payout annually for more than a quarter of a century. Most recently, it increased the quarterly dividend by more than 4% to $1.25 per share. At the new rate, Lowe's shares have a 2.3% dividend yield. That's more than double the S&P 500 index's 1.1% yield.
#flashing #down
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
There's no getting around it. Lowe's second-quarter sales were weak. Its same-store sales (comps) were essentially flat, growing a scant 0.2%. Management blamed the tepid sales result largely on macroeconomic pressures that have affected do-it-yourself homeowners' willingness to take on projects. Positively, sales to professional contractors, an area of focus, were strong.
In the near term, management doesn't expect sales growth to pick up. It now anticipates flat comps for the year, down from its previous expectation of 0% to 2%.
Still, shareholders can confidently rely on dividends. Lowe's has raised the payout annually for more than a quarter of a century. Most recently, it increased the quarterly dividend by more than 4% to $1.25 per share. At the new rate, Lowe's shares have a 2.3% dividend yield. That's more than double the S&P 500 index's 1.1% yield.
#flashing #down
13 days ago
