AUS
NZ
UK
CA
USA
IND
Highlights
- Lowe’s (NYSE:LOW) net income was US$3.02 billion or US$4.25 per share diluted in Q2.
- Target’s (NYSE:TGT) total revenue was US$25.16 billion compared to US$22.98 billion in the year-ago quarter.
- Lowe's stock was up 4.25% at 8:28 am ET, while Target stock fell 2.05% at 9:01 am ET.
Lowe’s Companies, Inc. (NYSE:LOW) and Target Corporation (NYSE:TGT) declared their second-quarter results before the market hours on Wednesday.
Lowe's stock was trading at US$190.00, up 4.25%, at 8:28 am ET, while the Target stock was priced at US$249.43, down 2.05%, at 9:01 am ET.
Here we explore the second-quarter performance of the two companies.
Lowe’s Companies, Inc.
Lowe’s is a home improvement retailer based in Mooresville, North Carolina. Lowe’s total sales in the second quarter ended July 30, 2021, were US$27.57 billion compared to US$27.30 billion in the same quarter the previous year. Its net income was US$3.02 billion or US$4.25 per share diluted compared to US$2.83 billion or US$3.74 per share diluted in the July quarter of 2020.
The company had 1,973 stores in the US and Canada as of July 30, 2021.
Lowe’s raised its expectation for the full year 2021. It expects its revenue to be approximately US$92 billion, indicating around 30% comparable sales growth on a two-year basis.
Also Read: Top nine transportation stocks based on their market capitalization
It expects operating margin to be 12.2% and capital expenditure to be around US$2 billion.
Lowe’s has a market capitalization of US$128.8 billion and a P/E ratio of 19.85. Its current dividend yield is 1.65%, and its annualized dividend is US$3.20. The company has around 300,000 workers and serves approximately 20 million customers a week.
At the market close on Aug 17, the stock fell 5.8% to US$182.26; the trading share volume was 8,256,370.
Also Read: Check out these fastest-growing small-cap healthcare stocks
Source - pixabay
Also Read: Why did these three energy stocks nosedive Tuesday?
Target Corporation
Target is a general merchandise retailer in the US. The company has around 1900 stores and the e-commerce platform target.com.
The company’s sales in Q2 ended July 31, 2021, was US$24.83 billion compared to US$22.70 billion in Q2 of 2020. Its total revenue was US$25.16 billion compared to US$22.98 billion in the year-ago quarter.
Its comparable-store sales grew by 8.7%, and comparable digital sales rose by 9.9% year-over-year. Digital sales growth was majorly due to the same-day service of the company.
The net income was US$1.8 billion or US$3.65 per share diluted compared to US$1.7 billion or US$3.35 per share diluted in the same quarter the previous year.
Also Read: Yik Yak is back on Apple App store with new safety features
For the rest of the year, the company’s outlook is to gain high single-digit growth in comparable sales. It also expects the operating income margin to be 8% or higher.
Its market capitalization is US$125.98 billion and has a P/E ratio of 20.77. The dividend yield currently is 1.03%, and the annualized dividend is US$3.60.
The stock closed at US$254.65 on Aug 17, 2021, with a trading volume of 6,620,517.
Also Read: Four trending food delivery stocks to explore
Bottomline
Lowe’s net income grew nearly 7%, while Target revenue increased 9.4% YoY. Businesses of brick-and-mortar stores and e-commerce companies are picking up as the economy emerges from the pandemic. The increased consumer spending is giving impetus to the sector.
