Lowe's stock jumps toward a record after profit and revenue beats, surprise growth in same-store sales

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Shares of Lowe's Companies LOW, +4.20% surged 2.1% into record territory in premarket trading Wednesday, after the home improvement retailer reported fiscal third-quarter profit and revenue that beat expectations, a surprise increase in same-store sales and raised its full-year outlook. Net income for the quarter to Oct. 29 rose to $1.90 billion, or $2.73 a share, from $692 million, or 91 cents a share, in the year-ago period. The FactSet consensus for earnings per share was $2.35. Sales grew 2.7% to $22.92 billion, beating the FactSet consensus of $22.08 billion, as cost of sales rose 2.1% and gross margin improved to 33.1% from 32.7%. Overall same-store sales rose 2.2%, compared with the FactSet consensus for a 1.3% decline, while U.S. same-store sales growth of 2.6% beat expectations of a 1.9% decline. For fiscal 2021, the company raised its revenue outlook to "approximately $95 billion" from "approximately $92 billion." Separately, the company said it repurchased $2.9 billion worth of its stock during the third quarter. The stock, which closed at a record $244.78 on Tuesday, has run up 34.3% over the past three months while the S&P 500 SPX, +0.39% has gained 5.7%.

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