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Lowe's Companies, Inc. (LOW - Free Report) is likely to register an increase in the top and the bottom line from the year-ago fiscal quarter’s respective readings when it reports third-quarter fiscal 2022 earnings on Nov 16, before the opening bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $23,102 million, indicating a 0.8% rise from the year-earlier fiscal quarter’s reported figure.

The Zacks Consensus Estimate for earnings has been stable in the past 30 days at $3.10 a share, suggests 13.6% growth from the year-ago fiscal quarter’s tally.

We expect revenues to be up 0.9% from the year-ago fiscal quarter’s actuals to $23,126.2 million and adjusted earnings to increase 13% from the same to $3.08 per share. Comparable sales are likely to inch up 1% from the prior-year fiscal period’s reported figure in the quarter under review.

In the last reported fiscal quarter, LOW delivered an earnings surprise of 0.9%. We note that this home-improvement retailer has a trailing four-quarter earnings surprise of 7.5%, on average.

Key Factors to Note

Lowe's retains its focus on enhancing its omni-channel retailing capabilities in store operations, website and supply chain to resonate well with customers’ demand. In addition, its pro business has been significantly contributing to its performance for a while. Management constantly enhances the Pro offerings across LOW’s stores and online with improved service levels, deeper inventory quantities, an intuitive store layout and the addition of Pro-focused brands.

LOW also continues benefiting from the solid execution of its Total Home strategy, focusing on boosting productivity and enriching the integrated omni-channel shopping experience. Further, gains from the execution of the Perpetual Productivity Improvement initiative have been aiding its performance for a while now. All these strengths are most likely to have driven LOW’s performance in the quarter to be reported.

On the flip side, a tough operating backdrop, including inflationary pressures and supply-chain disruptions, might have raised a concern.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Lowe's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as elaborated here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Lowe's has an Earnings ESP of -0.62% and a Zacks Rank #3.

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