Lowe's Companies, Inc (LOW) has reported a 5,927.27 percent jump in profit for the quarter ended Feb. 03, 2017. The company has earned $663 million, or $0.74 a share in the quarter, compared with $11 million, or $0.01 a share for the same period last year. On an adjusted basis, earnings per share were at $0.86 for the quarter compared with $0.59 in the same period last year. Revenue during the quarter grew 19.25 percent to $15,784 million from $13,236 million in the previous year period. Gross margin for the quarter contracted 25 basis points over the previous year period to 34.41 percent. Total expenses were 91.96 percent of quarterly revenues, down from 96.68 percent for the same period last year. This has led to an improvement of 472 basis points in operating margin to 8.04 percent.
Operating income for the quarter was $1,269 million, compared with $439 million in the previous year period.
"We achieved strong fourth quarter results, delivering comparable sales growth and adjusted earnings per share above our expectations," commented Robert A. Niblock, Lowe's chairman, president and chief executive officer. "We leveraged our omni-channel platform, customer experience design capabilities, and project expertise to drive strong holiday performance and capitalize on broad-based project demand throughout the quarter. Our success is a testament to our employees and I'd like to thank them for their dedication and purposeful commitment to serving the evolving needs of customers."
For financial year 2017, Lowes Companies projects revenue to grow at 5 percent. The company forecasts diluted earnings per share to be $4.64.
Operating cash flow improves
Lowe's Companies, Inc has generated cash of $5,617 million from operating activities during the year, up 17.41 percent or $833 million, when compared with the last year. The company has spent $3,361 million cash to meet investing activities during the year as against cash outgo of $1,343 million in the last year. It has incurred net capital expenditure of $1,130 million on net basis during the year, down 0.88 percent or $10 million from year ago.
The company has spent $2,092 million cash to carry out financing activities during the year as against cash outgo of $3,493 million in the last year period.
Cash and cash equivalents stood at $558 million as on Feb. 03, 2017, up 37.78 percent or $153 million from $405 million on Jan. 29, 2016.
Working capital drops significantly
Lowe's Companies, Inc has witnessed a decline in the working capital over the last year. It stood at $26 million as at Feb. 03, 2017, down 62.32 percent or $43 million from $69 million on Jan. 29, 2016. Current ratio was at 1 as on Feb. 03, 2017, down from 1.01 on Jan. 29, 2016.
Days inventory outstanding was almost stable at 50 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 31 days for the quarter from 30 for the same period last year.
Debt moves up
Lowe's Companies, Inc has witnessed an increase in total debt over the last one year. It stood at $15,699 million as on Feb. 03, 2017, up 24.11 percent or $3,050 million from $12,649 million on Jan. 29, 2016. Total debt was 45.63 percent of total assets as on Feb. 03, 2017, compared with 40.46 percent on Jan. 29, 2016. Debt to equity ratio was at 2.44 as on Feb. 03, 2017, up from 1.65 as on Jan. 29, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
