The earnings season for the Specialty Hardlines kicked off on Feb 25. as Lowe’s Companies, Inc (NYSE:LOW) reported its 4Q earnings. As far as the entire 2013 is concerned, there is a mixed outlook on this sector. Where weather sensitive companies are likely to feel some pain around the tough compare, up-market and housing-related retailers are expected to fare best. Let’s have a look at four stocks that are reported in the last week of Feb.
Lowe’s Companies, Inc (NYSE:LOW)
Lowe’s Companies, Inc (NYSE:LOW) is a home improvement retailer that distributes building materials and supplies through stores in the United States.
The company reported an EPS of 26 cents. The beat was supported by favorable DIY vendor trends that have been robust, accelerating to 4% in 4Q12 from 3% in 3Q12. Also, it won’t be wrong to say that, based on better vendor color, the sales forecasts for 2013 could prove conservative. The stock’s strong recent performance suggests enthusiasm for housing exposure, and little tolerance for the month-to-month volatility likely associated with tough weather-related compares. But the stock remains modestly valued relative to long-run potential, and the Street sees momentum in headway in line reviews with vendors.
RadioShack Corporation (NYSE:RSH)
RadioShack Corporation (NYSE:RSH) operates a chain of retail consumer electronics goods and services stores located throughout the United States and Mexico, along with wireless phone kiosks in the US, and dealer outlets worldwide. The Company offers consumers wireless phone and other electronic products and services from national brands and exclusive private brands and wireless carriers.
Visibility remains low heading into 2013. Analysts look for clarity related to the mobility business, potentially better iPhone sell through related to better supply availability, the traction of new smart phone product launches from Samsung and other vendors. As important as current trends in 4Q, will be an introduction to the new CEO and an update on longer-term strategic objectives. Recent enthusiasm in the stock looks a bit overdone.
The Home Depot, Inc (NYSE:HD)
The Home Depot, Inc (NYSE:HD) is a home improvement retailer that sells building materials and home improvement products. The Company sells a wide assortment of building materials, home improvement and lawn and garden products and provides a number of services.