Lowe's shares rally after results

stock.pngClick chart to track stock. by Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- Lowe's Cos. shares gained 3.5% in early trading Monday after the home improvement retailer posted higher fiscal second-quarter profit and revenue - although the company missed forecasts and lowered its outlook.

Lowe's (LOW, Fortune 500) reported a profit of $832 million, or 58 cents per share, for the quarter ended July 30. That was below the 59 cents per share analysts were forecasting, but was up 9.6% from $759 million, or 51 cents a share, a year earlier, thanks to cost-cutting measures.

Sales for the quarter rose 3.7% to $14.4 billion from $13.8 billion a year earlier. Analysts were expecting revenue to jump 5% to $14.5 billion.

"The stock should benefit from a sigh of relief that it could have been worse, but risk still remains as the macro recovery remains elusive," said David Strasser, analyst at Janney Capital Markets, in a research note.

Lowe's also gave a more cautious outlook for the year.

"Longer term, we believe improvements in labor and housing markets will be necessary to support more consistent improvement in demand for home improvement products," said Robert A. Niblock, Lowe's chairman and chief executive.

Lowe's is anticipating earnings per share of up to $1.45 for the fiscal year ending in January, down from $1.47 it previously projected.

Total sales are expected to increase about 4%, a drop from the 5% to 7% increase the company said it was expecting at the end of the first quarter.

Lowe's stock was up 61 cents to $20.20 in early trading. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play

Search for Jobs

Index Last Change % Change
Dow 18,041.54 -190.48 -1.04%
Nasdaq 5,032.75 -56.61 -1.11%
S&P 500 2,104.20 -21.86 -1.03%
Treasuries 2.14 -0.08 -3.52%
Data as of 10:16pm ET
Company Price Change % Change
Bank of America Corp... 16.50 -0.25 -1.49%
Apple Inc 129.62 -2.92 -2.20%
General Electric Co 27.52 -0.16 -0.58%
AT&T Inc 34.67 -0.04 -0.12%
Time Warner Cable In... 183.60 12.42 7.26%
Data as of 4:02pm ET
Sponsors

Sections

The day after comedian Amy Schumer appeared on ABC's "The Bachelorette," there is chatter about her becoming the show's next star. More

Unemployment is at its lowest level since 2007, but some companies are still cutting lots of jobs. More

Hong Kong's week-long Bun Festival means booming business for local bakery Kwok Kam Kee, which has produced the holiday's delicious highlight for decades. More