Lowe's raises earnings outlook, shares jump
Lowe’s raised its full-year outlook after profit grew in the third quarter, sending shares higher.
The home-improvement retailer earned $1 billion, or an adjusted $1.41 a share, topping Wall Street estimates of $1.35 a share. While companywide revenue of $17.5 billion trailed projections of $17.6 billion, comparable sales rose 2.2 percent overall and 3 percent at the company’s U.S. home-improvement business.
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“We were pleased with the performance of our U.S. home improvement stores, which reflects a solid macroeconomic backdrop and continued progress in our transformation," driven partly by investments in customer experience, CEO Marvin Ellison said in the statement.
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Improved execution and strong earnings-per-share growth enabled the company to raise its full-year earnings forecast to $5.63 to $5.70 a share, Ellison added.
Shares in longtime rival Home Depot sank a day earlier when executives reported lower third-quarter sales than Wall Street expected. Revenue of $27.2 billion trailed the $27.5 billion average of estimates from analysts surveyed by Refinitiv.
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Lowe's took a $53 million non-cash charge from the strategic review of its Canadian operations, which resulted in long-lived asset impairments and a change to the leadership team. The review is leading to the closing of 34 underperforming stores in the country.
Lowe's shares are up 22.8 percent year-to-date, slightly behind a 24.5 percent gain on the S&P 500.
This story is developing. Check back for updates.