NEW YORK (TheStreet) -- Shares of Lowe's Companies Inc. (LOW - Get Report) are lower by -1.36% to $47.21 as the home improvement retailer reacts negatively to Lumber Liquidators (LL - Get Report) announcement it slashed its 2014 full year earnings outlook.
The hardwood floor retailer said it's expecting an EPS between $2.65 and $3.00 per diluted share, compared to its previous guidance between $3.25 and $3.60 for the full year.
Lumber Liquidators is also expecting to see a drop in revenue for the full year between $1.05 billion and $1.10 billion, from between $1.15 billion and $1.20 billion.
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- LOW's revenue growth has slightly outpaced the industry average of 1.4%. Since the same quarter one year prior, revenues slightly increased by 2.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- LOWE'S COMPANIES INC has improved earnings per share by 24.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LOWE'S COMPANIES INC increased its bottom line by earning $2.13 versus $1.68 in the prior year. This year, the market expects an improvement in earnings ($2.61 versus $2.13).
- 35.50% is the gross profit margin for LOWE'S COMPANIES INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.65% trails the industry average.
- Net operating cash flow has remained constant at $1,994.00 million with no significant change when compared to the same quarter last year. In addition, LOWE'S COMPANIES INC has modestly surpassed the industry average cash flow growth rate of -3.80%.
- You can view the full analysis from the report here: LOW Ratings Report