Lowe’s reported second-quarter earnings that beat Wall Street’s estimates, sending its share surging by more than 7% in premarket trading.
Here’s how the company did, compared with what Wall Street was expecting, according to Refinitiv consensus estimates:
- Adjusted earnings per share: $2.15, vs. $2.01 estimated
- Revenue: $20.99 billion, vs. $20.94 billion estimated
- Same store sales: up 2.3%, vs. up 1.9% estimated
“We capitalized on spring demand, strong holiday event execution and growth in Paint and our Pro business to deliver strong second quarter results,” CEO Marvin R. Ellison said in announcing the results. The company’s earnings guidance for the fiscal year ending Jan. 31 remained the same, projecting adjusted earnings per share of between $5.45 and $5.65.
Lowe’s net income rose 10% to $1.68 billion, or $2.14 a share during the fiscal quarter ended Aug. 2, compared with $1.52 billion, or $1.86 a share a year earlier. Excluding one-time items, Lowe’s earned $2.15 a share, surpassing analyst expectations by 14 cents.
Revenue during the second quarter rose slightly to $20.99 billion, exceeding Wall Street expectations of $20.94 billion.
Ellison said that the company delivered a strong quarter despite deflation in lumber prices and difficult weather. Those were two points that hurt competitor Home Depot, which reported better-than-expected earnings, but missed on sales and cut its outlook for the year. Home Depot also said tariffs on Chinese goods were projected to impact the company’s sales.
Investors have been watching to see whether Ellison, who took over in July 2018, can turn the company around. Earlier this month, Lowe’s announced plans to lay off thousands of workers, and last year said it is shuttering stores to reduce costs. Among Ellison’s new initiatives also include the creation of a technology hub in Charlotte, North Carolina that will house as many as 2,000 workers.
The company said it repurchased $1.96 billion of stock and paid $382 million in dividends in the second quarter.
Shares of Lowe’s have risen almost 6% since January, valuing the company at around $76.62 billion.