Brooklyn, New York – A Lowe’s store in Brooklyn reported better-than-expected quarterly earnings on Wednesday, surprising Wall Street analysts. The company also provided a positive outlook for the coming year, projecting modest sales growth. Lowe’s announced that it anticipates total sales for the year to range from $83.5 billion to $84.5 billion, potentially exceeding the previous year’s total revenue of $83.67 billion. Comparable sales are expected to remain flat to slightly up, with earnings per share projected to fall between $12.15 and $12.40.
In the fourth quarter of fiscal year 2024, Lowe’s reported earnings per share of $1.93, surpassing the $1.84 expected by analysts, alongside revenue of $18.55 billion, beating the projected $18.29 billion. Despite a slight decline in revenue from the previous year, Lowe’s net income rose to $1.13 billion, or $1.99 per share, compared to $1.02 billion, or $1.77 per share, in the same period last year.
Investors are closely watching for signs of growth in the home improvement market, which has been impacted by slower housing turnover and higher borrowing costs. Lowe’s net sales for fiscal year 2024 totaled $83.67 billion, a 3% decline from the previous year. Despite this, the company’s shares rose over 2% in early trading, signaling optimism for the future.
While Lowe’s saw a 0.2% increase in comparable sales for the quarter, driven by online sales and growth among home professionals, the company faced challenges with discretionary do-it-yourself projects. The positive sales results marked a turnaround after eight consecutive quarters of declines, exceeding expectations from Wall Street analysts. Lowe’s main competitor, Home Depot, also experienced a rebound in comparable sales in the fourth quarter, breaking an eight-quarter losing streak.
The outlook for the housing market and mortgage rates remains uncertain, with Home Depot’s CFO expressing a belief that consumers will adapt to elevated rates. Despite some challenges, Lowe’s remains optimistic about the potential for improving trends in the year ahead. As of the latest update, Lowe’s shares closed at $242.39, reflecting a slight decrease for the year compared to gains in the S&P 500. Stay tuned for further updates on this developing story.