Lowe's Posts Downbeat Q2 Profit, But Sales Top Views

Lowe's Companies, Inc. LOW reported downbeat earnings for its second quarter on Wednesday. However, the company's sales exceeded analysts' estimates. The Mooresville, North Carolina-based company posted a quarterly profit of $1.13 billion, or $1.20 per share, compared to $1.04 billion, or $1.04 per share, in the year-ago period. Its net sales climbed 4.5 percent to $17.35 billion. However, analysts were estimating a profit of $1.24 per share on revenue of $17.27 billion. The average estimate among 38 Estimize users was for earnings of $1.24 per share and revenue of $17.36 billion. Its same-store sales climbed 4.3 percent in the recent quarter, while comparable sales for the U.S. home improvement business surged 4.6 percent. During the quarter, Lowe's repurchased $1.5 billion of stock under its share repurchase program. "We posted solid results for the quarter and were able to capitalize on big-ticket market share opportunities with strong growth in categories like appliances and outdoor power equipment," commented Robert A. Niblock, Lowe's chairman, president and CEO. The company backed its forecast for the full year. The company expects earnings of around $3.29 per share and sales growth of 4.5 percent to 5 percent. Lowe's shares fell 0.85 percent to $72.40 in pre-market trading.