Earnings Are Increasing in This Industry: Lowe’s Companies, Inc (LOW), RadioShack Corporation (RSH), The Home Depot, Inc. (HD)

The company reported a quarterly EPS of 68 cents which topped the Street’s estimates of 64 cents. The company topped the EPS estimate on the basis of recent strength in DIY results. Moreover, better sales growth is certainly feasible, given the strength of DIY (do-it-yourself) vendor results. The DIY supplier index accelerated to 4% in 4Q12 from 3% in 3Q12. A strong performance in the stock has taken valuation past the point that would imply compelling value based on the firm’s own buyback model; however, little upside is seen in the short-run.

Vitamin Shoppe Inc.  (NYSE:VSI)

Vitamin Shoppe Inc.  (NYSE:VSI) sells vitamins, minerals, herbs, supplements, sports nutrition and health and wellness products. The Company sells their products through their retail shops, internet and catalog operations.

The company posted SSS growth of 9.6%, which was much larger than the estimated 6.3% in 4Q. The beat was supported by the firm’s store maturation curve, and industry data showing strong 2012 trends held up well in 4Q. The start-up costs associated with two new stores in Canada (the chain’s first international stores) and a new distribution center are expected to drive costs higher than that embedded in consensus forecasts; The company reported an EPS of 55 cents on Feb. 26 which topped the analysts’ estimates of 51 cents. The management had a good story to tell alongside 4Q results, as the firm is only now beginning to pursue a promising global expansion and refocus on private brand development.

Foolish Bottom-Line

The 4Q earnings review tells us that the outlook for different retailers is indeed a mixed one. Some are expected to see upside in the near future while others may lack enough volatility to attract investors.

The article Earnings Are Increasing in This Industry originally appeared on Fool.com and is written by Masam Abbas.

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