A customer pushes a shopping cart towards the entrance of a Lowe’s store in Concord, California, on Tuesday, Feb. 23, 2021.
David Paul Morris | Bloomberg | Getty Images
Lowe’s said Wednesday that sales grew 5% and surpassed Wall Street’s estimates in the fiscal fourth quarter, as Americans bought, fixed up and renovated homes in a tight real estate market.
Shares rose more than 3% in premarket trading, as the home improvement retailer raised its forecast.
The company said it expects earnings per share to range from $ 13.10 to $ 13.60 on revenue of $ 97 billion to $ 99 billion to in fiscal 2022. It had previously forecast earnings per share of $ 12.94 on revenue of $ 97 billion for the year, which is a week longer than fiscal 2021.
Here’s what the company reported for the quarter ended Jan. 28 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $ 1.78 vs. $ 1.71 expected
- Revenue: $ 21.34 billion vs. $ 20.90 billion expected
In the fourth quarter, Lowe’s net income rose to $ 1.21 billion, or $ 1.78 per share, from $ 978 million, or $ 1.32 per share, a year earlier. The results were above the $ 1.71 expected by analysts surveyed by Refinitiv.
Sales climbed to $ 21.34 billion from $ 20.31 billion last year and outpaced analysts’ expectations of $ 20.90 billion.
Lowe’s same-store sales in the US increased 5.1% in the fourth quarter. The company said sales from home professionals grew 23% in the three-month period, too. The pros tend to be steadier and more lucrative customers.
As of Tuesday’s close, Lowe’s shares are up 27% over the past 12 months. Shares closed Tuesday at $ 214.59, bringing Lowe’s market value to $ 144.58 billion.
Read the company’s earnings press release here.
This story is developing. Please check back for updates.