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. 

Ticker Security Last Change Change %
LOW LOWE'S COMPANIES INC. 227.06 -3.25 -1.41%

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. 

Ticker Security Last Change Change %
HD THE HOME DEPOT INC. 330.81 -2.08 -0.62%

CLICK HERE TO READ MORE ON FOX BUSINESS

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.

GET FOX BUSINESS ON THE GO BY CLICKING HERE  

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.

A customer at a Lowe's home improvement store on Jan. 24, 2013 in Chicago, Illinois.  (Scott Olson/Getty Images / Getty Images)

On top of that, a high inventory of aging homes has also helped to propel homeowners to fix up their houses.

Ticker Security Last Change Change %
XHB SPDR SERIES TRUST S&P HOMEBUILDERS ETF USD 100.85 -1.78 -1.73%

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.