Will Home Depot be as cautious as Lowe's?
Lowe's sees the slow housing market weighing on its results this year. Rival Home Depot will report on Tuesday. Wal-Mart and Hewlett-Packard also report.
Updated: 7:02 p.m.
Many analysts and economists believe the U.S. recovery will be sharper and faster than expected.
Home-improvement retailer Lowe's (LOW) wasn't so sure today that the recovery will be robust before next year. Shares fell 3.1% to $25.26 this afternoon and weighed on U.S. stocks for most of the day.
Lowe's said it expects to earn 57 to 59 cents per share in the second quarter, below analysts' expectations of 62 cents per share.
A big issue, CEO Robert Niblock said on today's analyst call, is that the housing market still hasn't bottomed.
The bottom in prices has "now been pushed out to the first half of 2011, as we’ve got to get through this glut of foreclosures that potentially need to move through the marketplace," he said.
Home sales are critical to companies like Lowe's because each sale generates thousands of dollar of spending by buyers to fix up a home.
The company also said its first-quarter profit rose to $489 million, or 34 cents per share, from $476 million, or 32 cents per share, a year earlier, topping Wall Street's estimate of 31 cents per share.
Sales rose 4.7% to $12.4 billion, and sales at stores open at least a year rose 2.4%.
Analysts expect Home Depot to earn 40 cents a share in earnings, up from 35 cents a share a year ago. Revenue is expected to grow 1.2% to $16.37 billion.
Wal-Mart, meanwhile, is expected to report earnings of 84 cents a share for the fiscal first quarter, up 9% from a year ago. Revenue is projected at $97.8 billion, up 4.6% from a year.
Shares of the Dow component were up 1.2% today to $52.73. Wal-Mart shares are down 1.4% on the year.
After the close on Tuesday, Hewlett-Packard is expected to report a 22% increase in earnings per share for its fiscal second quarter to $1.05 a share.
Revenue is expected to increase 9% to $29.8 billion.
A big question is how the euro crisis is affect HP profits. HP gets 64% of its revenue outside the United States, although it doesn't break down non-U.S. by region. No country other than the United States generates more than 10% of sales, however.
HP shares were up 0.2% to $47.52 today and are down 7.8% for the year. The euro crisis has affected the stock, which is down 8.6% in May alone.
Elizabeth Strott contributed to this report.
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] At midday, the S&P 500 trades lower by 0.2%, looking to avoid its fourth day of losses.
Stocks began the session in the red as cautious action in Europe once again contributed to early weakness. In addition, bonds and risk assets were pressured by a better-than-expected ADP Employment report, which indicated employment in the nonfarm private business sector rose by 215K in November (160K Briefing.com consensus). The report increased expectations for a strong nonfarm ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
LATEST MARKET DISPATCHES
- No more Dispatches; here's where to find market news
The Market Dispatches column has been discontinued. Here's where to find the latest stock and business news on MSN Money, and the latest from market writer Charley Blaine.
- Dow falls 59 as late-day gloom kills a rally
- Stocks held back by fiscal-cliff worries
- Stocks suffer worst weekly loss in 5 months
- Dow off 121 as post-election swoon continues
- Dow slumps 313 after Obama's re-election
- Dow jumps 133 as Americans head to the polls
Forget the gloom-and-doomers. Here's what will drive the ascent in the new year.