Lowe's Companies reports Q2 $1.13B fiscal earnings but failed to meet Wall Street's expectation
By MoneyTimes
Aug 21, 2015 07:35 PM EDT
Regions
A Lowe's Cos. store stands in New York, U.S., on Thursday, July 30, 2015. Lowe's will open a store that's just 30,000 square feet (2,800 square meters) -- a quarter the size of its suburban home-improvement centers. The new location represents the company's first foray into Manhattan, but more notable is its role as a testing ground for Lowe's next growth engine: cities. (Photo : MoneyTimes)
Lowe's Companies Inc reports this year's second quarter net earnings at $1.13 billion, an eight percent increase from last year's $1.04 billion.
The company achieved this profit increase by limiting the growth of costs and expenses. Meanwhile, its net sales are at $17.35, a four percent increase from last year's $16.6 billion.
The Mooresville, North Carolina-based company's net earnings may have increased, but it is still lower than Wall Street expectations. On a per-share basis, its net income is $1.20. However, analysts from Wall Street expected the company to have a net income of $1.23 per share. Analysts expected Lowe's to have a net sale of $17.27 billion, which means the company exceeded expectations in this area.
Lowe's chairman, Robert A. Niblock said, "We posted solid results for the quarter and were able to capitalize on big-ticket market share opportunities with strong growth in categories like appliances and outdoor power equipment."
Lowe's have a total of 1,846 home improvement and hardware stores in the US, Canada, and Mexico. Niblock said they hit their targeted year-to-date earnings per share performance.
These figures, along with the execution of their strategic priorities, give them a confidence in their Business Outlook for 2015. The company expects to see a 4.5% to 5% increase in total sales for the 2015 fiscal year. The company also expects to see the same growth in their store sales.
Lowe's expect a $.28 per share earnings on annual sales growth of 4.6 percent to $58.79 billion for the fiscal year of 2015. The company will also be adding some 15 to 20 stores in 2015.
The company's shares went up 6 percent from the beginning of the year to present. Meanwhile, the Standard & Poor's 500 index rose by almost 2 percent. The stock increased by 45 percent in the last 12 months.