Lowe’s tops estimates as customers invest more in bigger home projects, retailer lifts sales forecast

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  • Lowe’s for fiscal third-quarter earnings beat expectations, as it received a boost to online sales and business from home professionals.
  • The home improvement retailer’s same-store sales rose 2.2% over the three-month period, despite analysts forecasting declines.
  • CEO Marvin Ellison said sales to home professionals, such as electricians and contractors, grew 16% in the third quarter.

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Lowe’s on Wednesday beat analysts’ expectations for fiscal third-quarter earnings, as the company got a jump in business from home professionals and online sales.

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The home improvement retailer also raised its forecast. It had earlier predicted revenue of $92 billion in this fiscal year. Now, it is estimated at around $95 billion.

Shares were up about 2% in premarket trading.

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Here’s what the company reported for the fiscal third quarter ended October 29, compared to Wall Street’s expectation, based on a survey of analysts by Refinitiv:

  • Earnings per share: $2.73 versus $2.36 expected
  • Revenue: $22.92 billion versus $22.06 billion expected

Lowe’s profits soar $1.90 billion, or $2.73 per share, from $692 million, or 91 cents per share, a year ago, The results exceeded $2.36 per share expected by analysts polled by Refinitiv.

Net sales rose to $22.92 billion from $22.31 billion last year and exceeded analysts’ expectations of $22.06 billion.

Lowe’s same-store sales increased 2.2% in the three-month period. That was a sharp difference from analysts’ prediction of a 1.5% drop, according to StreetAccount.

The retailer has stepped up efforts to attract more home professionals, such as contractors and electricians, because they are stable and big spenders. CEO Marvin Ellison said in a press release that sales of the company’s pros grew 16% in the third quarter. He said sales on its website have increased by 25%.

Read the company’s press release here.

This is breaking news. Please check back for updates.

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