Lowe’s 4Q income up, yearly results fall
Source: | Filed in
Retail & Services | 
Subscribe to Savvy Investor via RSS
2/22/10The Business Journal – Lowe’s Cos. Inc. reported increased earnings for its fourth quarter ended Jan. 29, but results for the full year were down.
The Mooresville-based home-improvement retailer earned $205 million, or 14 cents per diluted share, in the latest quarter, up from $162 million, or 11 cents per diluted share, in the fourth quarter of 2008.
Lowe’s exceeded analysts’ consensus estimate of 12 cents per share.
Sales grew 1.8 percent to $10.2 billion. Sales at stores in operation for more than a year dropped 1.6 percent, but that improved on the downward trend earlier in the year.
“While the psychological impact of falling home prices and an uncertain employment picture continue to weigh on consumers, improving comparable-store sales trends, including improvement in many bigger-ticket, project categories, provides an encouraging sign that consumers are gaining the confidence to take on more discretionary projects,” Chief Executive Robert Niblock said in a statement Monday morning.
For the full year, Lowe’s earnings fell 18.8 percent to $1.78 billion, or $1.21 per diluted share, from nearly $2.2 billion, or $1.49 per dilute share, the previous year.
On average, analysts had forecast the company would earn $1.23 per share in fiscal 2009.
Revenue declined 2.1 percent to $47.2 billion.
For its first quarter ending April 30, Lowe’s expects earnings to range between 27 cents and 29 cents per diluted share. Lowe’s earned 32 cents per diluted share in the first quarter of 2009.
In another announcement Monday, Lowe’s (NYSE:LOW) said it has authorized a $5 billion share-buyback program. The company expects to purchase the stock over the next three years.
Lowe’s shares have traded between $13 and $24.50 over the last year. The stock closed Friday at $23.13 per share.
Lowe’s operates more than 1,700 stores in North America. It operates 16 stores in the Triad, as well as a data center, and ranks as the region’s 10th largest employer with more than 3,200 employees. On Feb. 8, it opened its first two stores in Mexico — both in Monterrey. The company expanded into Canada in 2007 and now has 16 stores there.
