Lowe's slides pre-market as Q2 results miss expectations
Home improvement retailer Lowe’s Companies slid before the opening bell as it released weaker-than-expected results for the second quarter.
Lowe's Companies Inc.
$270.35
11:10 14/11/24
The company reported net earnings of $1.2bn, up 3.7% from the same period last year. Diluted earnings per share rose to $1.31 from $1.20 in the second quarter of 2015.
Meanwhile, sales in the quarter rose 5.3% to $18.3bn. Analysts had been expecting EPS of around $1.42 on revenue of $18.44bn.
Sales at stores open more than 13 months were up 2%, missing expectations of around 4%.
Chairman, president and chief executive officer Robert A. Niblock said: “We delivered solid results for the first half of the year, in line with our expectations.
"We believe we are well positioned to capitalise on a favourable macroeconomic backdrop for home improvement in the second half of this year as we continue to execute on our strategic priorities to provide better omni-channel experiences, deepen our relationships with professional customers, and drive productivity and profitability.”
Also on Wednesday, Lowe’s updated its guidance to reflect the acquisition of Canadian retail group RONA in May.
It now expects diluted earnings per share of approximately $4.06 for the fiscal year ending 3 February 2017 versus a previous forecast of $4.11.
Shares were down 6.7% in pre-market trade to $76.00.