Lowe’s Third Quarter Earnings Report Was Strong

Credit: Upgraded Points

Lowe’s has been having a good run recently.

As of November 1st, shares were up 35.6% on the same period from last year. After a good year, Lowe’s has increased full-year earnings expectations to $5.63-$5.70 per share. This is a significant increase on the previous forecast of $5.45-$5.65 per share. The company has also set its forecast for full-year comparable sales growth to about 3%. Consolidated comparable sales were up 2.2% for the third quarter.

This recent news follows the trend of strong performance in the home improvement industry. The industry is generally expanding at a healthy rate, with the notable exception of Home Depot. In fact, Lowe’s has a history of trailing behind Home Depot on growth, but the gap appears to be contracting. “We were pleased with the performance of our U.S. home improvement stores, which reflects a solid macroeconomic backdrop and continued progress in our transformation driven by investments in customer experience, improved merchandise category performance, and continued growth of our Pro business. Due to improved execution, we delivered strong earnings per share growth, and as a result, we are raising our adjusted earnings per share and adjusted operating income guidance for 2019,” said CEO Marvin Ellison.

Not all is smooth sailing at Lowe’s however. The company continues to close under-performing stores across North America. Despite the challenges, it can be said that Lowe’s is doing alright. Shares in the company were up 5% on the third quarter report.

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4 years ago
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