Lowe's soars the most in 11 years after smashing earnings estimates
- Shares of Lowe's surged as much as 13% on Wednesday after the retailer posted second-quarter revenue and profit that exceeded analyst expectations.
- The home-improvement retailer said overall sales from existing Lowe's stores grew 2.3%, while same-store revenue from US locations climbed 3.2%.
- Lowe's chief executive officer said the company's positive results were a reflection of a "solid macroeconomic backdrop."
- Watch Lowe's trade live.
Lowe's stock soared as much as 13% on Wednesday after the home-improvement retailer reported second-quarter results that outpaced Wall Street estimates.
Here are the key numbers from Lowe's second-quarter earnings report:
- Revenue: $20.99 billion versus $20.96 billion expected by analysts
- Earnings per share: $2.15 compared to 2.013 predicted by analysts
- Net income: $1.70 billion versus $1.58 billion estimated by analysts
- Same-store sales: Increased 2.3% from the same period last year
Overall revenue saw a slight 0.5% bump in the second quarter from the same period last year. Sales from existing Lowe's locations in the US jumped 3.2% during the period.
Wall Street closely watches same-store sales from retailers because it helps investors evaluate what portion of a company's sales growth is coming from existing stores compared to the opening of new locations.
"Despite lumber deflation and difficult weather, we are pleased that we delivered positive comparable sales in all 15 geographic regions of the U.S.," Chief Executive Officer Marvin Ellison said in a prepared statement. "This is a reflection of a solid macroeconomic backdrop and continued momentum executing our retail fundamentals framework."
Lowe's repurchased $1.96 billion worth of stock and paid out $382 million in dividends during the second quarter. The company expects total sales to grow by 2% in 2019, with same-store sales climbing closer to 3%.
Lowe's announced plans to lay-off store workers earlier this month as the company continues to move toward third-party vendors. The company didn't say how many employees would be affected, but it did say they would be given the opportunity to apply for new roles at Lowe's.
Lowe's is up 18% year-to-date.