Lowe’s sales jump 26.7% to £14.36 billion in the fiscal fourth quarter
- Lowe’s sales jump 26.7% to £14.36 billion in the fiscal fourth quarter.
- The retailer said it will buy back £6.37 billion worth of shares this year.
- Lowe's Companies gained more than 30% in the stock market last year.
Lowe’s Companies Inc. (NYSE: LOW) reported its financial results for the fiscal fourth quarter on Wednesday that topped analysts’ estimates for profit and sales. The company also announced a stock buyback worth £6.37 billion for the current year. Lowe’s repurchased £3.54 billion worth of shares in 2020, including £2.40 billion of share repurchase in Q4.
Lowe’s opened at £117.93 per share on Wednesday and closed the regular session at a per-share price of £114.77. In comparison, the stock had plummeted to as low as £46 per share in March 2020 when the impact of the ongoing Coronavirus pandemic was at its peak. The price action should come in handy if you are interested in investing in the stock market.
Lowe’s Q4 financial results versus analysts’ estimates
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Lowe’s said that its net income in the quarter that concluded on 29th January printed at £691.68 million that translates to 93 pence per share. In the comparable quarter of last year, its net income was capped at a much lower £359.98 million, or 46.68 pence per share.
Adjusted for one-time items, the retailer earned 94 pence per share in the recent quarter. Lowe’s valued its sales in Q4 at £14.36 billion that represents a 26.7% annualised growth. In separate news from the United States, Casper Sleep also announced its quarterly financial results on Wednesday.
According to FactSet, experts had forecast Lowe’s to report £13.73 billion of sales in the fourth quarter. Their estimate for adjusted per-share earnings stood at a lower 86 pence. In the prior quarter (Q3), Lowe’s had noted a 28.3% annualised growth in its sales, as per the report published in November.
Chief Executive Marvin Ellison’s comments on Wednesday
Same-store sales, as per the home improvement specialist, registered a 28.1% year over year increase in Q4 versus a 22% increase expected. Chief Executive Marvin Ellison commented on the earnings report on Wednesday and said:
“Strong execution enabled us to meet broad-based demand driven by the continued consumer focus on the home, with growth over 16% in all merchandising departments, over 19% across all U.S. regions and 121% on Lowe’s.com.”
Lowe’s Companies Inc. performed fairly upbeat in the stock market last year with an annual gain of more than 30%. At the time of writing, the Mooresville-based company has a market cap of £84.11 billion and a price to earnings ratio of 22.92.