Lowe’s raises its earnings forecast as a tight housing market, older homes fuel projects

Business

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A customer pushes a shopping cart towards the entrance of a Lowe’s store in Concord, California, on Tuesday, Feb. 23, 2021.
David Paul Morris | Bloomberg | Getty Images

Lowe’s said Wednesday that sales rose 5% and surpassed Wall Street’s estimates in the fiscal fourth quarter, as Americans bought, fixed up and renovated homes in a tight real estate market.

Shares rose more than 2% in premarket trading.

Here’s what the company reported for the quarter ended Jan. 28 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.78 vs. $1.71 expected
  • Revenue: $21.34 billion vs. $20.90 billion expected

Lowe’s net income rose to $1.21 billion, or $1.78 per share, from $978 million, or $1.32 per share, a year earlier. The results were above the $1.71 expected by analysts surveyed by Refinitiv.

Sales climbed to $21.34 billion from $20.31 billion last year and outpaced analysts’ expectations of $20.90 billion.

As of Tuesday’s close, Lowe’s shares are up 27% over the past 12 months. Shares closed Tuesday at $214.59, bringing Lowe’s market value to $144.58 billion.

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