Lowe & # 39; s reported a quarterly profit on Wednesday that exceeded analysts' expectations and increased the forecast for the year. However, sales in the quarter fell short of expectations.
Lowe's shares rose about 5% in premarket trading.
Lowe & # 39; s reported the following, as compared to Wall Street expectations:
- Earnings per share: $ 1.41, adjusted for $ 1.35 expected
- Revenues: $ 17.39 billion compared to $ 17.68 billion, expected
- Revenue growth in the same business: 2.2% vs. 3.1
Lowe & # 39; s now expects to close at 5% $ 63 and $ 5.70 per share, compared to a previous estimate of $ 5.67 per share.
In the third quarter ended November 1, Lowe's net income increased to $ 1.05 billion, or $ 1.36 per share, from $ 629 million, or 78 cents per share, the previous year. Excluding items, the company earned $ 1.41 per share, outperforming analysts' estimates of $ 1.35 per share, up 2.2%, according to a survey by Refinitiv. Analysts expected a plus of 3.1%. Sales in US stores that have been open for at least 12 months increased 3.0%.
Since Lowe's CEO Marvin Ellison arrived in July 2018, he has focused on professional contractors or professional clients. In the second quarter, Lowe owed his efforts to increase revenue in the US faster in the same business than its competitor's Home Depot. Lowe & # 39; s announced that 35,000 new Pro customers have been added in the last quarter.
Home Depot, however, always had its stronghold in the professional field. According to Jonathan Matuszewski, an analyst at Jefferies, approximately 45% of Home Depot's business comes from its professional clients. By comparison, Lowe's achieved about 20-25% of its sales with this group, he said Tuesday.
Home Depot reported sales that were weaker than expected on Tuesday, and lowered its revenue forecast for 2019, as this is the latest investment to pay off for longer than expected.
The Atlanta-based company announced Tuesday that it is improving its B2B Web site, which was created primarily for the company's professional customers. The site still requires basic engineering work before the company can introduce more elements.
Lowe's closing down 1.4% on Tuesday from Home Depot quarterly report. At the close on Tuesday, Lowe's shares rose more than 22% since the beginning of the year. The stock has a market value of $ 87.5 billion.
In the meantime, Home Depot shares closed 5.4% on Tuesday, reaching a market value of $ 247.4 billion. Since the beginning of the year its shares have risen by 32%.
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