Lowes Companies Inc., which is currently the second-largest home-improvement chain in the U.S., announced that its profit in the fourth quarter increased by 6.3% as the US housing market recovery boosted renovation spending. In addition, a buy-back plan for 5 billion dollars in shares was presented by the company.
Lowes Companies Inc. made an official statement today, revealing that its fourth-quarter net income rose from 288 million dollars, or 26 cents a share for the same period in 2012 to 306 million dollars, amounting to 29 cents a share. The company also said that excluding some items, its profit was estimated to 31 cents a share.
Lowes revenue for the fourth quarter jumped by 5.6% and reached 11.7 billion dollars, matching the average estimates of analysts. The company also revealed that its profit in the year ending January 30th 2015 is expected to be about 2.60 dollars per share, which trails analysts median estimate of 2.64 dollars.
Robert Niblock, the Chief Executive Officer of the company, has employed new workers at Lowes in order to benefit from an increase in home renovations, which were boosted by rising property values.
One of the analysts, who work for SunTrust Banks Inc. – Keith Hughes, said in a telephone interview, which was cited by Bloomberg that the housing market gains are far from over and recommended buying Lowes shares, explaining that several sectors, such as flooring and cabinets, still have plenty of room to grow.
Hughes also said: “Lowe’s has played at the high end, and Home Depot has played at the low end. That has helped Home Depot, but that advantage should flip to Lowe’s.”
The company also made an announcement, saying that the 5-billion-dollar share repurchase was approved by the Board.
Lowes Companies Inc. rose by 1.88% in New York on Tuesday to settle the session at $48.11, marking a one-year change of +31.48% and raising the companys market capitalization to $50.31 billion. According to CNN Money, the 19 analysts offering 12-month price forecasts for Lowes Companies Inc. have a median target of $53.00, with a high estimate of $61.00 and a low estimate of $44.00. The median estimate represents a +10.16% increase from the last close.
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