10-Q Review: Revenge of the red numbers
The four companies that closed the door on the latest earnings season —Central Garden & Pet, Deere, AZEK and Lowe's—all posted declines for both sales and earnings in their latest quarter.
Deere's sales dropped 27.7 percent, and Central Garden & Pet posted a loss of $34 million.
Lowe's declines weren't quite as severe: sales and earnings were down 1.5 percent and 4.4 percent, respectively.
“Our results were modestly better than expected, even excluding storm-related activity driven by strong pro and online sales and smaller ticket outdoor DIY projects,” said Lowe's CEO Marvin Ellison. “While demand for DIY discretionary bigger ticket projects remain soft, we're tightly managing our operating expenses and continuint to invest in our Total Home strategy.”
Of the 30 companies tracked, 14 posted sales increases in their most recent quarter, including The Home Depot. Lifted by its acquisition of SRS Distribution, The Home Depot reported a 6.6 percent gain in sales and a 4.3 percent decline in net earnings.
The median sales gain on the 10-Q Review is negative 1.15 percent. The median earnings decline is 9.9 percent.
The next earnings season will begin unofficially with the Dec. 18 release of The Toro Company’s fourth quarter earnings results.
NOTE: LL Flooring, the company formerly known as "Lumber Liquidators" in early September announced its intention to wind down the business. It has been replaced in the 10-Q Review by Fortune Brands Innovations (FBIN).
