Lowe's stock rises after retailer tops earnings estimates and backs full-year guidance
By Ciara Linnane
A decline in big-ticket spending was partially offset by strength in Pro and online
Lowe's Cos. Inc.'s stock rose 2.2% premarket Tuesday, after the home-improvement retailer posted better-than-expected first-quarter earnings as a decline in big ticket spending was partially offset by positive performance in Pro and online.
Mooresville, N.C.-based Lowe's had net earnings of $1.8 billion, or $3.06 a share, for the quarter, down from $2.3 billion, or $3.77 a share, in the year-earlier period. Sales fell to $21.364 billion from $22.347 billion a year ago.
The FactSet consensus was for EPS of $2.95 and sales of $21.137 billion.
Same-store sales fell 4.1%, while FactSet was expecting a 5.5% decline.
Chief Executive Marvin Ellison said the company was pleased by its start to spring.
"This quarter we rolled out our new DIY loyalty program nationally, expanded same-day delivery options and took market share in key categories," CEO Marvin Ellison said in prepared remarks. "We continue to gain momentum with our Total Home strategy, reflected in our growth in Pro and online."
His comments contrasted with those from rival Home Depot Inc., which last week posted weaker-than-expected first-quarter sales as the spring selling season got off to a delayed start.
The company is still expecting full-year sales to range from $84 billion to $85 billion and for EPS to range from $12.00 to $12.30. It expects same-store sales to fall 2% to 3%.
The FactSet consensus is for EOPS of $12.18, sales of $84.4 billion for same-store sales to fall 2.5%.
The stock has gained 3% in the year to date, while the S&P 500 has gained 11%.
-Ciara Linnane
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
05-21-24 0636ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks