Lowe's Reporting In-Line With Goldman's Estimates

Lowe's Companies, Inc. LOW reported a 2Q with EPS of $0.58, just above the $0.57 estimate from Goldman Sachs, and has tightened its guidance for 2010 to $1.38-1.45 from $1.37-1.47, and issued a single point S-S sales guidance at 2% vs. 4% previously. 3Q EPS are guided to $0.28-0.32 vs. Goldman's $0.31 estimate, and a sharp 120 bps of EBIT margin expansion. Aside from earnings, Lowe's gross margins missed Goldman's forecast but increased in absolute terms, which is good news after the company's sloppy 1Q reports, while solid expense control drove operating leverage and inventory growth showed moderation while staying above sales growth. Goldman currently has a Neutral rating for Lowe's, which closed yesterday at $19.59. More coverage will be released after Goldman's conference call with Lowe's, scheduled to take place at 9 AM this morning.