Lowe's Earnings Beat Estimates

Lowe's LOW, the home-improvement goods retailer, reported higher-than-estimated earnings in the fourth quarter as warm weather prompted home owners to get an early start on spring remodeling projects. Sales increased 11 percent in the quarter, from $10.5 billion in 2010 to $11.6 billion, the company said in a press release. This topped estimates of $11.35 billion in sales. The increase fueled $322 million in net earnings, up from $285 million a year earlier. Earnings per share also rose from 21 cents to 26 cents. Analysts predicted earnings per share of 24 cents. The increase in earnings per share was also fueled by a $5 billion share repurchase program started in August. "We delivered solid results for the quarter, including earnings per share that exceeded our guidance," said Chief Executive Officer Robert Niblock in the press release. In November the company announced the sale of $500 million in 3.8% notes due in 2021 and $500 million in 5.125% notes due in 2041. The money was to be used for general corporate purposes including share buybacks, the company said in a Nov. 16 statement. For the year Lowe's reported earning $1.84 billion, or $1.43 per share, a decrease from the year earlier period when the company earned $2.01 billion, $1.42 per share. he company opened about During fiscal year 2012 Lowe's plans to open about 10 stores in North America. It had originally planned to open about 30 stores, and decreased that guidance in October when the company announced plans to close 20 underperforming stores in 15 states, with a price tag of $345 to $415 million, about 17 to 20 cents per diluted share. The company opened about 25 stores in 2011, as planned, with one quarter of the stores in Canada and the others in the U.S. In December, Lowe's purchased Kirkland, Washington-based ATG Stores, an online seller of home improvement products, allowing Lowe's to use the company's strong online retail operations, Lowe's said in a press release. ATG will continue operating under its own brand and leadership will stay in place. Terms of the deal were not disclosed. In 2012 Lowes plans to increase comparable-store sales 1% to 3% and report diluted earnings per share of $1.75 to %$1.85. “We will capitalize on refinements we have made to our operating strategies as well as our efforts to improve the customer experience," Niblock said. "The team is well positioned to drive stronger comparable store sales growth and expanded operating margins."