The Mooresville, NC-based company reported adjusted second quarter net income of $1.37 per share, missing analyst estimates of $1.42. Revenue rose 5.4% from last year to $18.26 billion, also missing Wall Street’s view of $18.42 billion.
Looking ahead, LOW forecast 2017 earnings of $4.06 per share, which is in-line with analyst estimates, but lower than its prior outlook for $4.11. The company also anticipates sales to rise 10% to $65 billion for the year.
Other notes from the report included:
- Q2 same-store sales rose 2% from last year.
- Company bought back $1.2 billion worth of stock in Q2.
- As of July 29, 2016, company operated 2,108 home improvement and hardware stores in the United States, Canada and Mexico.
From the press release:
“We delivered solid results for the first half of the year, in line with our expectations,” commented Robert A. Niblock, Lowe’s chairman, president and CEO. “We believe we are well positioned to capitalize on a favorable 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.
“I would like to express my appreciation for our employees’ unwavering commitment to serving customers, enabling us to provide inspiration and support whenever and wherever they shop and positioning Lowe’s as the project authority in our industry,” Niblock added. “We are also very pleased to welcome RONA’s talented team into the Lowe’s family following the completion of the acquisition on May 20, 2016.”
Lowe’s shares plunged $4.30 (-5.28%) to $77.18 in premarket trading Wednesday. Prior to today’s report, LOW had gained 7% year-to-date, in-line with the return of the benchmark S&P 500 in the same period.