Lowe’s Cos. earnings and comparable store sales for its third quarter slipped as demand in big ticket do-it-yourself sales remained soft, but the company still managed to top Wall Street estimates.
Net earnings were $1.7 billion, or $2.99 per diluted share, versus $1.77 million, or $3.06 per diluted share, in the year-previous quarter. The company adjusted earnings per diluted share to $2.89 in the third quarter to account for a gain associated with its 2022 sale of its Canadian business, the company stated.
Lowe’s topped a Zacks Investment Research earnings estimate of $2.82 per adjusted diluted share. Revenues surpassed the Zacks estimate by 1.08%.
Comparable sales for the quarter slipped 1.1%, driven by the continued softness in bigger-ticket discretionary DIY product demand, partly offset by sales related to the hurricanes that struck the United States and positive comparable sales in Pro sales and online, according to Lowe’s. Total sales for the quarter were $20.17 billion versus $20.47 billion in the year-prior quarter. Operating income was $2.54 billion versus $2.7 billion in the year-earlier period.
“Our results this quarter were modestly better-than-expected, even excluding storm-related activity, driven by high-single-digit positive comps in Pro, strong online sales and smaller-ticket outdoor DIY projects,” said Marvin Ellison, Lowe’s chairman, president and CEO.”
