Lowe’s earnings beat on robust home improvement spending, but shares fall

Tiger Newspress2021-05-19

KEY POINTS

  • Lowe’s reported Wednesday that consumers are continuing to invest in their homes in the first quarter and it saw sales pick up among home professionals, such as contractors.
  • The home improvement retailer said it’s tracking ahead of its previous forecast for sales of $86 billion this fiscal year.
  • Shares fell early Wednesday, despite the retailer’s beating Wall Street’s expectations for first-quarter earnings.

Lowe’s reported Wednesday that consumers are continuing to invest in their homes in the first quarter and it saw sales pick up among home professionals, such as contractors.

Shares were down about 2% in premarket trading.

The home improvement retailer said momentum continued into May. Based on that consumer demand, it said it’s tracking ahead of its previous forecast for sales of $86 billion this fiscal year.

Here’s what the company reported for the fiscal first quarter ended April 30 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $3.21 vs. $2.62 expected
  • Revenue: $24.42 billion vs. $23.86 billion expected

Lowe’s reported first-quarter net income of$2.33 billion, or $3.21 per share, up from $1.34 billion, or $1.76 per share,a year earlier.The results outpaced the $2.62 per share expected by analysts surveyed by Refinitiv.

Net sales rose to $24.42 billion from $19.68 billion last year, higher than analysts’ expectations of $23.86 billion.

As of Tuesday’s close, Lowe’s shares have risen about 20% so far this year. Its shares closed at $192.75 on Tuesday, bringing its market value to $138.24 billion.

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