MOORESVILLE, N.C. – Lowe’s revenue for the fourth quarter beat most expectations and its profit outlook for the year did too amid a housing recovery that is sending more do-it-yourselfers through its doors.
Unseasonably warm weather also meant that home owners tackled projects outside during what is usually a slower quarter for the industry.
For the three months ended Jan. 29, Lowe’s earned $11 million, or a penny per share. Excluding a $530 million impairment charge tied to the company’s exit from an Australian joint venture, earnings were 59 cents per share, which was in line with Wall Street expectations, according to a poll by Zacks Investment Research.
A year earlier the Mooresville, North Carolina-based company earned $450 million, or 46 cents per share.
Revenue rose to $13.24 billion from $12.54 billion, which was better than the $13.05 billion that analysts were projecting.
Sales at stores open at least a year climbed 5.2 per cent as expected.
At U.S. locations, same-store sales increased 5.5 per cent.
“We capitalized on increased demand for exterior products as a result of warmer weather, while at the same time helped customers tackle interior projects,” Chairman and CEO Robert Niblock said in a written statement Wednesday.
A day earlier, rival Home Depot Inc. reported a better-than-expected fourth-quarter profit and revenue and higher same-store sales, also benefiting from the recovering housing market and pleasant weather.
Lowe’s Cos. reported a full-year adjusted profit of $3.29 per share on revenue of $59.07 billion.
The company expects 2016 earnings of about $4 per share, with revenue up approximately 6 per cent. It anticipates same-store sales rising about 4 per cent.
Analysts surveyed by FactSet expect full-year earnings of $3.95 per share.
The company had 1,857 home improvement and hardware stores in the United States, Canada and Mexico at quarter’s end.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on LOW at http://www.zacks.com/ap/LOW
Keywords: Lowe’s, Earnings Report, Priority Earnings