Loweâ€™s (NYSE:LOW) grew its profits by a stronger-than-expected 17% in the third quarter, but the home improvement retailerâ€™s sales missed forecasts and it trimmed its full-year guidance.
The Home Depot (NYSE:HD) rival said it earned $404 million, or 29 cents a share, last quarter, compared with a profit of $344 million, or 23 cents a share, a year earlier. Analysts had called for EPS of 30 cents.
Excluding one-time items, it earned 31 cents a share, beating estimates by a penny.
Revenue inched up just $11.59 billion, trailing the Streetâ€™s view of $11.75 billion. Same-store sales were up 0.2%.
"Thanks to the dedication of our 238,000+ employees, we delivered solid results for the quarter despite the continued sluggishness of the economic recovery," CEO Robert Niblock said in a statement.
Looking ahead, Loweâ€™s said it sees fourth-quarter sales rising 2% to 4% and same-store sales increasing 0% to 2%.
For the full year, Loweâ€™s said it expects EPS of $1.37 to $1.40 on sales to climb 3% to 4%. Previously, it forecasted EPS of $1.38 to $1.45 on a 4% rise in revenue.
"Ongoing uncertainty in employment and housing continues to pressure our industry, but we are prepared to operate effectively in a slow-growth environment,â€ť Niblock said.
Despite the sales miss and lowered guidance, shares of Loweâ€™s rose 0.3% to $21.75 in Mondayâ€™s premarkets. The stock had been down 7% on the year as of Fridayâ€™s close.