Lowe's store
Image courtesy of Shutterstock

Lowe's Earnings Preview: Will It Mimic Home Depot's Rally?

By:Mike Butler

Lowe's (LOW) is set to report earnings before the market opens on Tuesday, Nov. 21. Can it beat expectations?

  • Lowe's is set to report earnings before the market opens on Tuesday, Nov. 21.
  • Home Depot crushed its earnings announcement, and Lowe's rallied almost $10.
  • Lowe's is expected to report earnings per share of $3.03 on $20.86 billion in revenue.
  • Earnings per share and revenue figures for Lowe’s are significantly lower than last quarter's expectation.
  • The home improvement company exceeded expectations four quarters in a row, while only beating revenue expectations twice in the same period.

Lowe's Earnings Preview

Lowe's (LOW) has had a back and forth 2023, opening the year at $201.49 and reaching a high of $237.21 in July. Just a few months later, the stock tumbled to the annual low of $181.85. It currently sits at $205.33 after receiving a nice $10 "sympathy" rally after Home Depot (HD) rallied $15 after its earnings announcement.


Lowe's is expected to announce earnings per share (EPS) of $3.03 on $20.86 billion in revenue before the market opens on Tuesday, Nov. 21. The stock price expected move based on current implied volatility is +-$9.32, which is just under 5% of the current stock price.


Looking farther to the January 2024 options cycle, you can see the expected stock price move is +-$13.38. This cycle makes up a large chunk of the expected move through the rest of the year, even though the stock has already moved higher in the past few days.

Bullish LOW stock for earnings

The previous earning’s estimate was an EPS of $4.48 on $24.98 billion in revenue. This quarter, we're looking at an EPS estimate of $3.03 on $20.86 billion in revenue. That is a big reduction in expectations, especially when you consider that Home Depot just beat revenue and EPS estimates pretty handily, after a similar reduction in estimates. If the popular home improvement company can beat EPS and revenue figures in this recent bull rally, I wouldn't be surprised to see the stock continue higher.

Bearish LOW stock for earnings

Lowe's beat EPS estimates four quarters in a row up to this upcoming earnings announcement, but it posted its weakest beat of 1.79% this most recent quarter. The stock saw a $10 rally after Home Depot earnings, but that could mean consumers are heading to Home Depot instead of Lowe's. It seems as though after the sympathy move, the home improvement company will have to post similar or better earnings numbers relative to Home Depot to maintain the recent rally. If there is a big miss or weak guidance, we could easily see the stock retreat after the announcement is made.

Tune in to Options Trading Concepts Live on Monday, Nov. 15 for a look at options trading strategies ahead of the Lowe's quarterly earnings announcement the next morning.

Mike Butler, tastylive director of market intelligence, has been in the markets and trading for a decade. He appears on Options Trading Concepts Live, airing Monday-Friday. @tradermikeyb

For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.

Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Related Posts

tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.  Options, futures, and futures options are not suitable for all investors.  Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.

tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.

tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.

tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.

© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved.  Applicable portions of the Terms of Use on tastylive.com apply.  Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.