Categories AlphaGraphs, Earnings, LATEST, Retail

Lowe’s reports better than expected Q2 earnings on strong comp sales; stock climbs

Lowe’s Companies, Inc. (NYSE: LOW), a provider of home improvement services, Wednesday said its second-quarter earnings rose 4%, aided by solid comparable-store sales. The results also topped the market’s expectations. Lowe’s stock gained sharply early Wednesday following the announcement.

Lowe’s (LOW) reports better than expected Q2 earnings

At $21 billion, net sales were up 1% from the second quarter of 2018 and slightly above analysts’ consensus estimate. Total comparable sales moved up 2.3% and US comparable-store sales advanced 3.2%.

During the quarter, adjusted earnings rose to $2.15 per share from $2.07 per share in the corresponding period of last year, surpassing the market’s prediction. Unadjusted profit was $1.7 billion or $2.14 per share, compared to $1.5 billion or $1.86 per share last year.

Also read: Baozun Q2 earnings, revenue exceed expectations

“We capitalized on spring demand, strong holiday event execution and growth in Paint and our Pro business to deliver strong second-quarter results. Despite lumber deflation and difficult weather, we are pleased that we delivered positive comparable sales in all 15 geographic regions of the U.S,” said chief executive officer Marvin Ellison.

Encouraged by the positive July-quarter results, the management currently expects full-year 2019 sales to grow about 2% year-over-year, aided by a 3% increase in comparable-store sales. Adjusted earnings are forecast to be in the range of $5.45 per share to $5.65 per share and unadjusted earnings between $5.54 per share and $5.74 per share. Full-year operating income, as a percentage of sales, is seen growing by 310-340 basis points.

During the three-month period, Lowe’s repurchased $1.96 billion of its shares and paid $382 million in dividends. At the end of the quarter, the company had 2,003 home improvement and hardware stores in the United States and Canada.

Also see: Lowe’s Q1 2019 Earnings Conference Call Transcript

Earlier this week, rival home furnishing firm Home Depot (HD) reported a 1.2% increase in second-quarter sales to $30.8 billion, which however fell short of estimates. Total comparable sales grew 3%, lifting earnings by 4% to $3.17 per share.

Shares of Lowe’s Companies rose sharply during Wednesday’s pre-market trading, after closing the previous session notably higher. They have gained 8% in the past twelve months.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top