NEW YORK (CNN/Money) -
Lowe's Companies Inc.'s fiscal first-quarter profit jumped 53 percent Monday, breezing past Wall Street estimates, as the nation's No. 2 home improvement chain said it benefited from an ongoing refurbishing and redecorating trend in spite of a sluggish economy.
For the latest quarter ended May 3, Lowe's reported earnings of $345.8 million, or 44 cents a share, up from $225.3 million, or 29 cents a share, a year earlier. Analysts polled by earnings tracker First Call anticipated a profit of 36 cents a share.
First-quarter sales increased to $6.5 billion from $5.3 billion. Sales at stores open at least a year, a key gauge known as same-store sales, increased 7.5 percent in the quarter.
Shares of Lowe's (LOW: Research, Estimates) jumped $2.74 in before hours trading Monday on Instinet to $47.50.
The Wilkesboro, N.C.-based chain also said it expects second quarter earnings of 53 to 54 cents a share, slightly ahead of Wall Street expectations, and full-year earnings of $1.66-$1.69 a share. That's ahead of the $1.58 a share expected by analysts, according to First Call.
Second quarter same-store sales are expected to increase 4-6 percent, and full-year same-store sales are forecast to rise 5 percent.
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