Wednesday, July 29th18.5°C
26925

Lowe's 4Q adjusted profit meets analysts' estimates; announces $5B stock repurchase program

NEW YORK, N.Y. - Lowe's fiscal fourth-quarter net income rose 6 per cent, as the home-improvement retailer continued to benefit from the housing market's recovery.

The company also announced a new $5 billion stock repurchase program on Wednesday. Shares of the company rose nearly 6 per cent in morning trading.

The U.S. housing market has emerged from a deep slump, aided by rising home prices, steady job growth and fewer troubled loans dating back to the housing-bubble days. That has spurred customers to spend more to renovate their homes.

Housing market growth is expected to slow in 2014 but CEO Robert Niblock said in a call with investors he thinks consumer spending on home projects will stay strong.

"Homeowners continue to believe the value of their home is increasing and report that they are less likely to decrease spending," he said. "With consumers more willing to invest in their homes, the job and income growth forecast for 2014 should provide the wherewithal for continued home improvement spending."

Lowe's strong results came the same day as the Commerce Department said that U.S. sales of new homes rebounded in January to the fastest pace in more than five years. That gave some hope that housing could be regaining momentum after a slowdown last year caused by rising interest rates.

Lowe's Cos. earned $306 million, or 29 cents per share, for the period ended Jan. 31. That's up from $288 million, or 26 cents per share, a year ago.

Excluding impairment charges, earnings were 31 cents per share. That matched the expectations of analysts polled by FactSet.

Revenue rose 6 per cent to $11.66 billion from $11.05 billion. Wall Street forecast $11.67 billion.

Lowe's financial report comes a day after larger rival Home Depot Inc.'s quarterly results topped analysts' estimates on cost cuts despite sluggish sales.

For the full year, Lowe's earned $2.29 billion, or $2.14 per share. In the prior year it earned $1.96 billion, or $1.69 per share. Annual revenue rose 6 per cent to $53.42 billion from $50.52 billion.

Looking ahead, the company foresees fiscal 2014 earnings of about $2.60 per share, with revenue rising approximately 5 per cent. Based on fiscal 2013's revenue of $53.42 billion, that implies about $56.1 billion.

Analysts expect earnings of $2.64 per share on revenue of $56.19 billion.

Lowe's also announced a new $5 billion buyback. The company said that the remaining $1.3 billion balance under its prior repurchase program will continue to be used, for a total authorization of $6.3 billion as of Jan. 31.

Shares rose $2.77, or 5.8 per cent, to $50.88 in morning trading.

The Canadian Press


Read more Business News

26764


Recent Trending




Today's Market
S&P TSX14301.80+224.44
S&P CDNX584.76-2.20
DJIA17751.39+121.12
Nasdaq5111.73+22.53
S&P 5002108.57+15.32
CDN Dollar0.7715-0.0007
Gold1096.90+0.60
Oil49.18+0.02
Lumber253.00+1.40
Natural Gas2.883+0.062

 
Okanagan Companies
Pacific Safety0.18+0.01
Knighthawk0.010.00
QHR Technologies Inc1.40+0.03
Cantex0.05+0.00
Anavex Life Sciences0.7865+0.0065
Metalex Ventures0.05-0.01
Russel Metals19.21+0.86
Copper Mountain Mining0.85+0.03
Colorado Resources0.06+0.00
ReliaBrand Inc0.0045-0.0022
Sunrise Resources Ltd0.03+0.00
Mission Ready Services0.14-0.01
Decisive Dividend Corp2.50-0.08

 





FEATURED Property
22673543860 Beach Avenue
6 bedrooms 4 baths
$1,188,888
more details
image2image2image2
Click here to feature your property
Please wait... loading


Chasing ducks

Photo: Thinkstock.comWhen businessmen tell me that being low priced is the only way to stay in business, I am skeptical. Price is the simplest way for a consumer to compare and is overused as the basi...


Taking care of business

Photo: Thinkstock.comRetirement as a goal has changed a lot over the years. There was a time, it was the only goal. You’d punch the clock and count the years until you could stop punching that t...


Income from home equity

Photo: Thinkstock.comWhen retirement funds run low, seniors often ask if tapping into the equity in their home is the right way to retain financial independence. To see if this option might be a good ...

_








Member of BC Press Council


26708