=Lowe's (LOW) reported earnings on Wed 23 August 2017 (b/o)

Lowe's misses by $0.06, reports revs in-line; guides FY18 EPS below consensus, reaffirms FY18 revs guidance; Q2 comps +4.5%

• Reports Q2 (Jul) earnings of $1.57 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus of $1.63; revenues rose 6.8% year/year to $19.5 bln vs the $19.58 bln Capital IQ Consensus. Q2 Comparable sales increased 4.5 percent
• Co issues guidance for FY18, sees EPS of $4.20-4.30, excluding non-recurring items, vs. $4.64 Capital IQ Consensus Estimate; sees FY18 revs of +5% to $68.27 bln vs. $68.4 bln Capital IQ Consensus Estimate. EPS guidance is reflective of the loss on extinguishment of debt and the gain from the sale of the company's interest in its Australian joint venture (prior guidance $4.20-4.30). Comparable sales are expected to increase approximately 3.5 percent The company expects to add approximately 25 home improvement and hardware stores. Operating income as a percentage of sales (operating margin) is expected to increase 80 to 100 basis points.2 The effective income tax rate is expected to be 36.9%.