Lowe's stock jumps on strong housing renovations
Lowe's projects revenue in 2022 to range between $97 billion to $99 billion
Lowe's Companies, Inc. is bucking the downtrend in the markets Wednesday as shares moved higher.
|LOW||LOWE'S COS. INC.||205.70||-0.82||-0.40%|
The nation's second-largest home improvement retailer boosted its forecast for 2022 as Americans continue to invest in their homes.
CEO Marvin Ellison told investors Wednesday that the company remains "confident in the long-term strength of the home improvement market" and its "ability to expand operating margin" amid a buzzing home improvement trend and red-hot housing market, which is allowing the company to gain market share.
Throughout the pandemic, home improvement stores like Lowes and Home Depot have been busy as people working from home took on new projects. Many people bought new homes for office space.
|HD||THE HOME DEPOT INC.||283.49||-6.82||-2.35%|
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Lowe's projected full-year earnings for 2022 to be $13.10 to $13.60 per share, with revenue in the range of $97 billion to $99 billion.
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The upbeat forecast comes after the company earned $1.21 billion, or $1.78 per share, for the quarter ended Jan. 28. The home improvement retailer also posted revenue of $21.34 billion in the period, also surpassing Street forecasts. Nine analysts surveyed by Zacks expected $20.82 billion.
On top of that, a high inventory of aging homes has also helped to propel homeowners to fix up their houses.
|XHB||SPDR SERIES TRUST SPDR S&P HOMEBUILDERS ETF||68.88||-1.44||-2.05%|
Meanwhile, existing-home sales surged, rising 6.7% last month from December to a seasonally adjusted annual rate of 6.5 million, the National Association of Realtors said Friday. That's equivalent to more than the roughly 6.08 million sales that economists had been expecting, according to FactSet.
The Associated Press contributed to this report.