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

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Add Comment
Viewing Highlight