Lowe's

Lowe's Q3 FY24 #EarningsReport Summary | $LOW (+0.7%)

In Q3 FY24, Lowe's faced challenges from reduced DIY discretionary demand, partly offset by strong Pro sales, online growth, and storm-related purchases. Despite these challenges, Lowe's demonstrated resilience with earnings exceeding modest expectations.

📊 Income Statement Highlights (vs. Q3 FY23):

▫️ Net Income: $1.70B vs. $1.77B (-4.39%)

▫️ Total Revenue: $20.17B vs. $20.47B (-1.47%)

▫️ Adjusted EPS: $2.89 vs. $3.06 (-5.56%)

▫️ Gross Margin: 33.69% vs. 33.66% (+0.03pp)

▫️ Operating Income: $2.54B vs. $2.70B (-5.93%)

▫️ GAAP Operating Margin: 12.57% vs. 13.17% (-0.60pp)

💼 Balance Sheet Highlights (vs. Q3 FY23):

▫️ Total Assets: $44.74B (+5.23%)

▫️Total Liabilities: $58.16B (+0.86%)

▫️ Shareholders' Deficit: $(13.42)B vs. $(15.15)B (+11.38%)

▫️ Cash and Cash Equivalents: $3.27B vs. $1.21B (+170.25%)

🔮 Future Outlook:

For FY24, Lowe's updated its guidance:

▫️ Total sales: $83.0B–$83.5B (previously $82.7B–$83.2B)

▫️ Comparable sales: Down 3.0%–3.5% (improved from down 3.5%–4.0%)

▫️ Adjusted Operating Margin: 12.3%–12.4%

▫️ Adjusted EPS: $11.80–$11.90

Lowe’s strategic priorities for Q4 include leveraging Pro and online growth, while navigating ongoing DIY demand softness. Anticipated storm-related sales will provide modest tailwinds.

Lowe‘s Earnings $LOW (+0.7%)

BILL ACKMAN BOUGHT $NKE (-6.85%)

It's one of his first buys in over a year.

This position represent 2.2% of his 10$ bln portfolio and roughly a 0.19% ownership of Nike.

He hasn't made any public comment yet about this decision.

• Chipotle

He drastically reduced is position even if it remains still is 2° holding.

• Alphabet

He sold about 28% of his $GOOGL (+0.94%) position (both Class A and Class C)

• Brookfield Corp.

He opened a new position in $BN (+0.75%) ad now represents roughly 3% of his total portfolio.

• Lowe's

He sold 100% of shares in $LOW (+0.7%) after he made approximately 140% gain.

Bill Ackman is a famous superinvestor known for his approach of owning few stocks and limiting the diversification.

Considerations:

• Chipotle $CMG (-0.82%)

He probably sold because he knew that the CEO was going to leave or because of the high valuation this company has.

• Lowe's

Lowe's and Home Depot are good business especially when interest rates are low, probably he thinks that interests rates reduction are going to take a lot of time.

• Alphabet

I am surprised to see that he has sold considering how good Alphabet is as a company and the valuation is not high.

• Nike

I am surprised to see that he bought Nike.

I always imagined Bill A. as the kind of investor who would have bought $LULU (+1.1%) instead.

Right now Lululemon has a lower valuation than Nike, but better growth ahead.

Another week, another (fractional) share of $V (-0.14%) 💳

Today’s purchase brings to me up to just about 14 total shares of Visa. At this point, it’s the 7th largest position in the portfolio, and is just a hair behind the 6th largest, $LOW (+0.7%).

I plan to keep chipping away at Visa until I reach 20 shares, and then I’ll consider contributing to other things again. It’s getting really tempting not to add to some of my down/break even positions like $SBUX (-1.55%) ,$WPC (+0.65%), or $JNJ (+0.03%)…but what are you going to do, gotta keep the focus!

Which stocks are you buying this week? Let me know in the comments! 👇

Q4-2023 - Bill Ackman - Pershing Square Capital Management

He reduced his stake in $LOW (+0.7%) by about 82%, his share went from 16% to 2.67%.

BILL ACKMAN JUST UPDATED HIS US STOCK PORTFOLIO

GOOGLE 17% $GOOGL (+0.94%)

CHIPOTLE 16% $CMG (-0.82%)

BURGER KING 15%

HILTON 15% $HLT (+0.67%)

LOWES 14% $LOW (+0.7%)

HOWARD HUGHES 12% $HHH (+0.69%)

CANADIAN PACIFIC 11% $CP

LAST 5 YEAR PERFORMANCE

BILL ACKMAN -> +192%

WAREN BUFFET -> +59%

S&P 500 -> +49%

CARL ICHAN -> -71%

DAMM