Lowe's raises earnings outlook, shares jump

Lowe’s raised its full-year outlook after profit grew in the third quarter, sending shares higher.

The home-improvement retailer earned $1 billion, or an adjusted $1.41 a share, topping Wall Street estimates of $1.35 a share. While companywide revenue of $17.5 billion trailed projections of $17.6 billion, comparable sales rose 2.2 percent overall and 3 percent at the company’s U.S. home-improvement business.

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“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 partly by investments in customer experience, CEO Marvin Ellison said in the statement.

Stocks in this Article

LOW LOWE'S COS., INC.
$208.89
+2.62 (+1.27%)
HD THE HOME DEPOT, INC.
$335.93
+1.71 (+0.51%)

Improved execution and strong earnings-per-share growth enabled the company to raise its full-year earnings forecast to $5.63 to $5.70 a share, Ellison added.

Shares in longtime rival Home Depot sank a day earlier when executives reported lower third-quarter sales than Wall Street expected. Revenue of $27.2 billion trailed the $27.5 billion average of estimates from analysts surveyed by Refinitiv.

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Lowe's took a $53 million non-cash charge from the strategic review of its Canadian operations, which resulted in long-lived asset impairments and a change to the leadership team. The review is leading to the closing of 34 underperforming stores in the country.

Lowe's shares are up 22.8 percent year-to-date, slightly behind a 24.5 percent gain on the S&P 500.

This story is developing. Check back for updates.