Lowe's Beats Q3 Views

Lowe's Companies, Inc. LOW reported stronger-than-expected results for the third quarter. The Mooresville, North Carolina-based company posted quarterly net income of $736 million, or $0.80 per share, compared to $585 million, or $0.59 per share, in the year-ago period. Its net sales climbed 5 percent to $14.36 billion. However, analysts were projecting earnings of $0.78 per share on revenue of $14.34 billion. The average estimate among 55 Estimize users was for earnings of $0.78 per share and revenue of $14.34 billion. Its same-store sales increased 4.6 percent for the third quarter, while comparable sales for the U.S. home improvement business surged 5.0 percent. During the quarter, Lowe's repurchased $750 million of stock under its share repurchase program. "This is an exciting time for Lowe's as we continue to execute our strategic priorities alongside a favorable macroeconomic backdrop," commented Robert A. Niblock, Lowe's chairman, president and CEO. "I am pleased that we delivered another solid quarter. Comparable sales growth was driven by gains in both transactions and average ticket, while our focus on productivity and profitability also allowed us to deliver strong earnings per share growth." Lowe's expects FY 2016 earnings of $3.29 per share, versus analysts' estimates of $3.28 per share. It projects total sales growth of 4.5 percent to 5 percent and comparable sales to rise 4 percent to 4.5 percent. Lowe's shares gained 1.63 percent to close at $72.81 yesterday.