Lowe's Companies, Inc. (NYSE: LOW) Earnings Preview: Key Financials and Ratios to Watch

• Lowe's is set to release its quarterly earnings on November 19, 2024, with an estimated EPS of $2.81 and projected revenue of $19.9 billion.
• The company's price-to-earnings (P/E) ratio is approximately 22.16, and the price-to-sales ratio is about 1.83.
• Despite expectations of a year-over-year decline, there's anticipation that Lowe's might surpass earnings estimates.

Lowe's Companies, Inc. (NYSE: LOW) is a prominent player in the home improvement retail sector, competing with giants like Home Depot. As a major retailer, Lowe's offers a wide range of products for home maintenance, repair, and remodeling. The company is set to release its quarterly earnings on November 19, 2024, with analysts estimating an earnings per share (EPS) of $2.81 and projected revenue of $19.9 billion.

Wall Street analysts are keenly observing Lowe's performance ahead of its Q3 earnings report. They are not only focusing on revenue and profit estimates but also examining key metrics to gauge the company's performance for the quarter ending in October 2024. Despite expectations of a year-over-year decline in earnings and lower revenues, Zacks Investment Research anticipates that Lowe's might surpass earnings estimates.

Lowe's has a price-to-earnings (P/E) ratio of approximately 22.16, indicating investor willingness to pay for each dollar of earnings. The price-to-sales ratio is about 1.83, reflecting the company's market value relative to its sales. The enterprise value to sales ratio stands at around 2.25, showing the company's total valuation compared to its revenue.

The enterprise value to operating cash flow ratio is approximately 19.74, highlighting the company's valuation in relation to its cash flow from operations. Lowe's earnings yield is about 4.51%, offering insight into the return on investment for shareholders. The debt-to-equity ratio is -2.65, suggesting a higher level of debt compared to equity, while the current ratio of approximately 1.22 indicates the company's ability to cover short-term liabilities with short-term assets.

The upcoming earnings call on November 19 at 9 a.m. will be crucial for investors. Management's discussion will provide insights into the company's financial performance and strategic initiatives, influencing the stock's movement. A positive earnings surprise could lead to an upward trend in the stock price, while a miss might result in a decline.