Home improvement warehouse operator Lowe's Companies, Inc. ( LOW
The Mooresville, NC-based compared reported second quarter net income of $832 million, or 58 cents per share, compared with $759 million, or 51 cents per share, in the year-ago period.
Sales rose 3.7% from last year, to $14.36 billion.
On average, Wall Street analysts expected a slightly higher profit of 59 cents per share, on larger revenue of $14.52 billion.
On a positive note, the company said same-store sales rose 1.6% in the quarter, which marked the second straight uptick in that important sales metric. Lowe's had previously seen 15 straight quarterly same-store sales declines.
Looking ahead, the company narrowed its full-year profit outlook range to $1.38 to $1.45 per share, compared with a prior view for $1.37 to $1.47 per share. It cut its sales outlook, though, to a 4% expected increase. It had previously forecast full-year sales to rise by 5% to 7%.
Lowe's shares rose 61 cents, or +3.1%, in premarket trading Monday.
The Bottom Line
We had removed shares of LOW from our recommended list back on May 29, 2009, when the stock was trading at $19.02. The company has a 2.25% dividend yield, based on Friday's closing stock price of $19.59. The stock has technical support in the $18 price area. If the shares can firm up, we see overhead resistance around the $22 price level. We would remain on the sidelines for now.
Lowe's Companies, Inc. ( LOW ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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