Coffee With Greta: Earnings Continue

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Good morning friends!

Futures are mixed as traders digest the latest batch of earnings and look ahead to key data.

Let’s get right to it!

Lowe’s Falls On Outlook

Lowe’s (LOW) shares are down 1.1% ahead of the open after beating Q4 expectations but issuing guidance for revenue to fall. 

Here’s how the home improvement retailer’s results compared to analysts’ estimates: 

  • EPS: $1.77 vs $1.68 expected
  • Revenue: $18.60 billion vs $18.45 billion expected

Comparable sales dropped 6.2% year over year as DIY demand fell and poor weather in January impacted sales. 

Lowe’s forecast revenue between $84 billion and $85 billion in fiscal 2024, down from $86.38 billion last year. 

The company expects comparable sales to decline between 2% and 3% this year and EPS of $12 to $12.30.

Macy’s Falls On Weak Q4

Macy’s (M) shares are sliding 2.2% in premarket trade after reporting mixed Q4 results. 

Here’s how the department store chain’s results compared to analysts’ estimates: 

  • Adjusted EPS: $2.45 vs $1.96 expected
  • Revenue: $8.12 billion vs $8.15 billion expected

Sales fell nearly 2% from a year ago during the quarter. 

Macy’s said it expects sales to remain stagnant this year, forecasting revenue between $22.2 billion and $22.9 billion this fiscal year vs $23.09 billion last year. 

The company said it expects comparable sales to range between a 1.5% decline and 1.5% gain year over year. 

As part of its strategy to return to growth, Macy’s plans to close about 150 stores.

Zoom Pops On Strong Q4

Zoom Video Communications (ZM) shares are up 8.2% ahead of the open after beating Q4 expectations on the top and bottom line. 

Here’s how the video chat software company’s results compared to analysts’ estimates: 

  • Adjusted EPS: $1.22 vs $1.15 expected
  • Revenue: $1.15 billion vs $1.13 billion expected

Revenue rose less than 3% year over year.

The company had 220,400 enterprise customers at the end of the quarter, up from 219,700 at the end of Q3. 

Zoom forecast Q1 adjusted EPS between $1.18 and $1.20 on $1.125 billion in revenue. 

Analysts were anticipating a forecast for $1.13 in adjusted EPS on $1.13 billion in revenue. 

For the full fiscal year, Zoom expects adjusted EPS of $4.85 to $4.88 on $4.60 billion in revenue vs $4.71 EPS on $4.65 billion in revenue expected.

In Case You Missed It

  • New home sales were weaker than expected in January. The Census Bureau reported sales of newly built homes rose 1.5% to a seasonally adjusted annual rate of 661,000 units vs 680,000 expected. Most of the country reported growth in new sales except for the South where new sales dropped 15.6%. December’s data was also revised lower to a 7.2% increase from 8% originally. The median price of a new home sold in January rose to $420,700.

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