Lowe’s sales jump 28.3% to £16.79 billion in the fiscal third quarter
- Lowe’s sales jump 28.3% to £16.79 billion in the fiscal third quarter.
- The home improvement retailer reports £520.72 million of net income.
- Lowe's forecasts up to 20% growth in fourth-quarter same-store sales.
Lowe’s Companies Inc. (NYSE: LOW) reported its financial results for the fiscal third quarter on Wednesday. The company said that sales were better than expected in the recent quarter while adjusted profit matched analysts’ estimates.
Lowe’s shares were reported about 4.8% down in premarket trading on Wednesday. On a year to date basis, the American retail company is now more than 30% up in the stock market. Since March, when the impact of COVID-19 crisis was at its peak, Lowe’s shares, that you can learn to buy online here, have recovered close to 150%.
Lowe’s Q3 financial results versus analysts’ estimates
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Lowe’s said that net income in the third quarter printed at £520.72 million that translates to 68.48 pence per share. In the same quarter last year, its net income stood at a higher £790 million, or £1.02 per share.
Adjusted for one-time items, the home improvement retailer earned £1.49 per share that matched experts’ forecast. In terms of sales, Lowe’s posted £16.79 billion in Q3 that represents a 28.3% year over year growth. According to FactSet, analysts had anticipated the company to register a lower £15.93 billion of sales in the recent quarter.
The American retail company also said on Wednesday that its comparable-store sales in the United States climbed by 30.4% in the third quarter versus 23.0% expected. In the prior quarter (Q2), Lowe’s revenue had jumped 30% on an annualised basis, as per the report published in August.
Lowe’s actively strategised to offer support to its employees amidst the ongoing Coronavirus pandemic in recent months. The support, it said, cost £184.36 million in Q3. The COVID-19 crisis has so far infected more than 11 million people in the U.S. and caused over a quarter million deaths.
Lowe’s guidance for the fiscal fourth quarter
The Mooresville-based company valued shares repurchase at £467.29 million in the recent quarter. For fiscal Q4, the company now forecasts its adjusted per-share earnings to fall in the range of 83 pence to 90 pence. FactSet Consensus for adjusted EPS, on the other hand, stands at 87 pence.
Lowe’s expects up to 20% growth in its same-store sales in the fiscal fourth quarter versus FactSet Consensus of a 13% growth. The retailer declared its cash dividend last week.
At the time of writing, Lowe’s has a market cap of £90.91 billion and a price to earnings ratio of 21.24.