Lowe’s earnings up but fall short of estimates

August 19 23:42 2015

Home improvement retailer Lowe’s (LOW) reported an 8.4% increase in profit for the second quarter, but the results fell short of Wall Street expectations. Lowe’s (LOW) posted net earnings of $1.13 billion, or $1.20 a share, up from $1.04 billion, or $1.04 a share, from the same period a year ago.Lowes-Coupons

Analysts expected earnings of $1.24 per share, according to Thomson Reuters I/B/E/S. The company’s net sales rose 4.5% for the period to $17.3 billion, in line with expectations. Sales at stores open at least a year rose 4.3%.

That performance trailed the industry average of 4.6% for the quarter. Lowe’s said its full-year forecast is for a same-store sales increase of 4% to 4.5%. “We posted solid results for the quarter and were able to capitalize on big-ticket market share opportunities with strong growth in categories like appliances and outdoor power equipment,” Lowe’s CEO Robert Niblock said in a statement. “I would like to thank our employees for their hard work and commitment to serving customers during this important selling season.

Investors sent Lowe’s shares down by about 1% in pre-market trading. Rival Home Depot (HD) Tuesday posted earnings that beat expectations and raised its profit outlook for the year.