Lowe’s 3Q net income rises
Monday, November 15, 2010
MOORESVILLE, N.C. (AP) — Lowe’s Cos. third-quarter profit rose 19 percent as the home improvement retailer kept a rein on costs while shoppers continued to be guarded in their spending.
The company said Monday that revenue was weaker than expected and trimmed its guidance for the year.
Net income rose to $404 million, or 29 cents per share, for the three months ended Oct. 29. That’s up from $344 million, or 23 cents per share, last year.
Excluding a charge, earnings totaled 31 cents per share. Analysts polled by Thomson Reuters, on average, expected 30 cents per share.
Revenue rose 2 percent to $11.59 billion. Analysts expected $11.75 billion.
Revenue in stores open at least one year edged up just 0.2 percent during the quarter. The measure is considered an important measure of a retailer’s health because it excludes stores that opened or closed during the year.
“Ongoing uncertainty in employment and housing continues to pressure our industry, but we are prepared to operate effectively in a slow-growth environment,” said CEO Robert Niblock.
Lowe’s expects net income of 16 cents to 19 cents per share in the fourth quarter.
It expects revenue to rise 2 percent to 4 percent during the period. That implies revenue of $10.37 billion to $10.58 billion. Analysts predict net income of 18 cents per share on revenue of $10.47 billion.
For the fiscal year, the company now expects net income of $1.37 to $1.40 per share, down from prior guidance of $1.38 to $1.45 per share.
It expects revenue to rise 3 percent to 4 percent, from prior guidance of 4 percent. That implies revenue of $48.64 billion to $49.11 billion.
Analysts expect $1.41 per share on revenue of $48.97 billion.
Lowe’s larger rival Home Depot Co. reports quarterly results on Tuesday.
Lowe’s shares rose 6 cents to $21.75 in pre-market trading.
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