Lowe’s posted results that beat analysts’ expectations for the third fiscal quarter, boosted by its home development and online sales business, prompting the home developer to raise its annual sales outlook to $95 billion from its previous forecast of $92 billion, which was reflected in the closing of its shares, up by 0.4%, to record $245.76, knowing that it touched its highest value in a year when it reached $255.22 during today’s trading.
Lowe’s earnings for the third quarter ended October 29 grew to $1.9 billion, or $2.73 per share, from $692 million, or 91 cents per share, a year earlier, exceeding Wall Street analysts’ expectations of $2.36 per share.
Net sales or revenue jumped to $22.92 billion, after it was $22.31 billion a year ago, also exceeding analyst expectations, which was 22.06 billion, and Lowe’s recorded a growth in sales in stores by 2.2%, while analysts predicted the exact opposite by expecting a decline of 1.5%.
A strong housing market and a growing wave of home projects boosted sales of Lowe’s and rival Home Depot, and despite rising prices for homes and building materials, American consumers continued to buy as homebuilders increased confidence as the markets thirst for new homes for single families. Published by Home Depot This Consumer Trends. Read more [Home Depot Revenue Soars As Consumers Repair Their Homes].
Lowe’s said in its report that it plans to buy back $3 billion in stock during the fourth quarter, bringing the total value of stock buybacks this year to $12 billion, having bought 13.7 million of its stock for $2.9 billion last quarter.