A man walks past a Lowe’s store in Los Angeles, California.
Mario Tama | Getty Images
Lowe’s shares rose more than 7% in premarket trading Wednesday after the company reported better-than-expected earnings.
Here’s what Lowe’s reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.77, adjusted vs. $1.32 expected
- Revenue: $19.68 billion vs. $18.32 billion expected
- Same-store sales: up 11.2% vs. 3.3% expected
However, it’s difficult to compare reported earnings with analyst estimates for the first quarter because the coronavirus pandemic has changed customers’ shopping patterns and added additional labor and safety costs for companies.
Lowe’s reported earnings a day after rival Home Depot reported a mixed first quarter. Home Depot’s sales beat expectations as Americans stayed home due to Covid-19 restrictions and invested in home improvement. However, the company’s increased revenue was outpaced by ballooning costs from boosting workers’ pay and benefits.
Home Depot leads in the space, boasting a bigger customer base of professional contractors and a growing e-commerce business. Like Lowe’s, Home Depot has been making improvements to its stores and website. Home Depot is investing $11 billion over three years, a decision that’s put pressure on its margins.