The second-biggest US home-improvement retailer – Lowes Companies Inc. made an official statement today, revealing its results for the first financial quarter of the year. The company posted profit for the three months that ended May 2nd, that surpassed analysts estimates, despite demand was weaker over the period, due to unfavourable weather conditions.
Mr. Robert Niblock, who is the current Chief Executive Officer of the company said in the statement, which was cited by the Wall Street Journal: “We executed well during the quarter, despite an unexpectedly prolonged winter in many areas of the country. While poor weather dampened traffic and negatively impacted performance of exterior categories, results for indoor categories were solid.”
As Bloomberg reported, Mr. Niblock also added: “Performance has improved in May which, together with our strengthening execution, gives us the confidence to reaffirm our sales and operating profit outlook for the year.”
Lowes Companies Inc. reported that its first-quarter net income rose from 540 million dollars (49 cents per share) for the same period a year ago to 624 million dollars (61 cents per share). The company also explained that excluding some items the profit was 62 cents a share, which topped the median forecast by analysts, which projected an average of 60 cents a share.
Nevertheless, the company said that its sales over the fiscal first quarter were affected by the harsh winter weather. The company also revealed its outlook for the annual profit, which is estimated to 2.63 dollars a share. This projection is higher than the previously expected 2.60 dollars a share, as well as higher than the analysts estimates that amount to 2.62 dollars per share.
Lowes Companies Inc. was 0.26% down to trade at 45.40 dollars per share in New York, marking a one-year change of +6.95%. According to the information published on CNN Money, the 21 analysts offering 12-month price forecasts for Lowes Companies Inc. have a median target of 55.00, with a high estimate of 59.00 and a low estimate of 44.00. The median estimate represents a +20.83% increase from the last price of 45.52.
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