Earnings

Lowe’s shares tumble as earnings fall short, despite robust sales gains

A shopper visits a Lowe’s hardware store in Philadelphia, Pennsylvania, November 4, 2020.

Mark Makela | Reuters

Lowe’s on Wednesday reported quarterly same-store sales growth of more than 30%, including a doubling of online sales, as the coronavirus pandemic pushed more people to its stores and website to invest in their homes.

Its shares were falling more than 6% in premarket trading.

Here’s how the home improvement company did during its fiscal third quarter compared with what analysts were expecting, based on Refinitiv data:

  • Earnings per share: $1.98, adjusted, vs. $1.99 expected
  • Revenue: $22.31 billion vs. $21.25 billion expected

For the quarter ended Oct. 30, Lowe’s net income fell to $692 million, or 91 cents a share, from $1.05 billion, or $1.36 per share, a year earlier. Excluding a $1.1 billion pretax loss on extinguishment of debt, the company earned $1.98 per share, a penny short of analysts’ estimates, based on Refinitiv data.

Sales rose to $22.31 billion from $17.39 billion a year earlier, beating expectations for $21.25 billion.

Same-store sales, which track sales online and at Lowe’s stores open for at least 12 months, surged 30.1%, topping estimates for 22.8% growth.

The results from Lowe’s come one day after its larger rival Home Depot reported third-quarter earnings that beat estimates, as consumers continued to focus on home improvement during the coronavirus pandemic and sales surged 24% from a year ago.

As of Tuesday’s market close, Lowe’s shares are up roughly 33% this year. The company has a market cap of $120.8 billion.

Find the full earnings press release from Lowe’s here.

This story is developing. Please check back for updates.

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