Lowe's Companies, Inc. (LOW) has reported a 31.90 percent plunge in profit for the quarter ended May 05, 2017. The company has earned $602 million, or $0.70 a share in the quarter, compared with $884 million, or $0.98 a share for the same period last year. On an adjusted basis, earnings per share were at $1.03 for the quarter compared with $0.87 in the same period last year.
Revenue during the quarter grew 10.67 percent to $16,860 million from $15,234 million in the previous year period. Gross margin for the quarter contracted 63 basis points over the previous year period to 34.40 percent. Total expenses were 90.75 percent of quarterly revenues, up from 89.59 percent for the same period last year. That has resulted in a contraction of 116 basis points in operating margin to 9.25 percent.
Operating income for the quarter was $1,559 million, compared with $1,586 million in the previous year period.
"A solid macroeconomic backdrop, combined with our project expertise, drove above average performance in indoor projects. We also continued to advance our sales to Pro customers, delivering another quarter of comparable sales growth well above the company average," commented Robert A. Niblock, Lowe’s chairman, president and CEO
For fiscal year 2017, Lowe's Companies, Inc. expects revenue to grow at 5 percent . The company projects diluted earnings per share to be $4.30.
Operating cash flow improves marginally
Lowe's Companies, Inc. has generated cash of $3,295 million from operating activities during the quarter, up 2.33 percent or $75 million, when compared with the last year period.
The company has spent $291 million cash to meet investing activities during the quarter as against cash outgo of $349 million in the last year period. It has incurred net capital expenditure of $196 million on net basis during the quarter, down 0.51 percent or $1 million from year ago period.
The company has spent $1,605 million cash to carry out financing activities during the quarter as against cash inflow of $1,284 million in the last year period.
Cash and cash equivalents stood at $1,963 million as on May 05, 2017, down 56.96 percent or $2,598 million from $4,561 million on Apr. 29, 2016.
Debt moves up marginally
Lowe's Companies, Inc. has witnessed an increase in total debt over the last one year. It stood at $16,065 million as on May 05, 2017, up 4.28 percent or $660 million from $15,405 million on Apr. 29, 2016.
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