Everybody knows how critical earnings season is, with companies finally pulling back the curtain and unveiling what’s transpired behind closed doors.

We’re well into the season, with the feared earnings apocalypse yet to appear.

And in the coming weeks, many more are slated to report.

Two companies, Lowe’s LOW and Builders FirstSource BLDR, are scheduled to reveal their quarterly results this week. BLDR will report on February 28th, whereas Lowe’s will report on March 1st, both before the market open.

How do the companies stack up? We can use results from a peer, Home Depot HD, as a small gauge. Let’s take a closer look.

Home Depot

Home Depot posted better-than-expected bottom line results, exceeding the Zacks Consensus EPS Estimate by 1%.

Quarterly revenue totaled $35.8 billion, modestly below expectations but growing 0.3% year-over-year. Below is a chart illustrating the company’s revenue on a quarterly basis.


Image Source: Zacks Investment Research

In addition, there were several notable highlights, including –

HD announced that its board of directors approved a 10% increase in the company’s quarterly dividend, with the dividend now yielding $8.36 annually. Further, the company announced that it’s committing $1 billion in annualized compensation for hourly and frontline associates.

And to top it off, the company provided guidance for FY23; HD expects sales and comparable store sales growth to be flat year-over-year compared to FY22 and diluted EPS to decline by a mid-single-digit percentage.

Now, onto Lowe’s and Builders FirstSource.

Lowe’s

Quarterly Estimates –

Analysts have primarily been bearish for LOW’s quarter to be reported, with four negative earnings estimate revisions hitting the tape over the last several months. The Zacks Consensus EPS Estimate of $2.21 suggests a 24% improvement within the bottom line year-over-year.

Zacks Investment Research
Image Source: Zacks Investment Research

Our consensus revenue estimate stands firm at $22.8 billion, indicating a positive change of nearly 7% from the year-ago quarter.

Quarterly Performance –

Lowe’s has consistently posted better-than-expected earnings results, exceeding the Zacks Consensus EPS Estimate in 14 consecutive quarters.

Revenue results have also been primarily positive, with the retailer registering eight top line beats across its last ten quarters.

Zacks Investment Research
Image Source: Zacks Investment Research

Builders FirstSource

Quarterly Estimates –

Analysts have had mixed reactions for BLDR’s upcoming quarter, with a singular downward and upward earnings estimate revision coming in. The Zacks Consensus EPS Estimate of $2.37 reflects a 15% year-over-year pullback in earnings.

Zacks Investment Research
Image Source: Zacks Investment Research

Pivoting to the top line, the Zacks Consensus Sales Estimate of $4.2 billion indicates a nearly 9% pullback from year-ago revenue of $4.6 billion.

Quarterly Performance –

BLDR boasts a strong earnings track record, exceeding both earnings and revenue estimates in seven consecutive quarters.

Just in its latest release, the company registered a sizable 47% EPS beat and reported revenue 10% above expectations.

Zacks Investment Research
Image Source: Zacks Investment Research

Putting Everything Together

Earnings season continues to roll along, with investors finally seeing what’s transpired behind closed doors.

We’ve received plenty of quarterly results so far, and soon we’ll hear from Lowe’s LOW and Builders FirstSource BLDR.

A peer, Home Depot HD, already reported its quarterly results, with the company posting mixed top and bottom line results but upping its dividend payout.

Heading into their releases, Lowe’s and Builders FirstSource are both a Zacks Rank #3 (Hold).

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Lowe’s Companies, Inc. (LOW) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.