3 Things to Watch When Lowe’s Reports Q2 Results on Wednesday

Lowe’s Companies (LOW) is set to release second quarter results before the market opens on Wednesday, August 19th. Analysts expect net income of $1.24 a share on sales of $17.27 billion, ahead of the $16.6 billion the Mooresville, North Carolina-based home improvement retailer reported during the same quarter last year. ‘We think both currency fluctuations and bad weather will have some impact on Lowe’s results, but we’re expecting a strong quarter and are positive on its outlook,’ said S&P Capital IQ equity analyst Efraim Levy. Meanwhile, rival Home Depot (HD), based in Atlanta, reported better-than-expected second quarter results on Tuesday, with a 5.7 percent year-over-year increase in same store sales, a critical industry metric. Home Depot also upped its fiscal 2015 guidance and now expects sales growth between 5.2 percent and 6 percent, compared to a previously reported 4.2 percent to 4.8 percent. ‘I don’t know that Lowe’s will see same store sales increase 6 percent [like Home Depot’s], but we do expect 4-5 percent growth,’ Levy said. ‘We also think there will be growth both in the do-it-yourself division and the professional customer area.’ TheStreet’s Scott Gamm reports from New York.