NEW YORK (CNN/Money) -
Lowe's Cos. reported improved fiscal fourth-quarter results Monday that beat the most optimistic forecasts from Wall Street.
Shares of Lowe's jumped more than 4 percent in early trading on the New York Stock Exchange.
The company, the No. 2 home improvement chain after Home Depot Inc. (HD: Research, Estimates), earned $319.4 million, or 40 cents a share, up 42 percent from $218.4 million, or 28 cents a share, a year earlier. Analysts surveyed by earnings tracker First Call had a consensus forecast of 33 cents, and a range of estimates from 33 to 34 cents.
Sales rose to $6.1 billion from $5.3 billion in the year-earlier period.
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Lowe's (LOW: up $2.11 to $38.13, Research, Estimates) has been picking up market share from Home Depot, and the fourth quarter marks the eighth straight quarter it has topped analysts' forecasts.
However, the company took a somewhat cautious outlook for the first-quarter guidance, though. It said it sees first-quarter EPS from 51 to 53 cents, at slightly above the consensus forecast of 51 cents.
It also said it sees the total sales increase about 15 percent, which is just below the 16 percent gain forecast by analysts, while sales at stores open at least a year, a closely watched retail measure known as same-store sales, is projected to rise 2-to-4 percent.
"We're cautiously optimistic for 2003 but we're still seeing signs of a vibrant and growing improvement market," Lowe's CEO Robert Tillman said in an earnings conference call.
Lowe's said it sees 2003 earnings per share between $2.16 and $2.20 but added that new accounting pronouncements related to its vendor agreements could impact its 2004 earnings. The company said it will update its 2004 forecast after completing an evaluation.
The retailer said it planned to open 130 stores in 2003, including 20 in the first quarter
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