Lowe’s Earnings Beat Estimates and Company Raises Guidance

Home improvement retailer Lowe’s Companies Inc. reported better-than-expected earnings for the fourth quarter and raised its guidance for fiscal 2023.

Lowe’s reported earnings per share of $2.28, beating the consensus estimate of $2.23. Revenue also topped expectations, coming in at $27.4 billion compared to the $27.3 billion estimate.

The company attributed the strong results to continued strength in the home improvement market, driven by rising home prices and low interest rates. Lowe’s also benefited from increased demand for its Pro customers, who are typically contractors and other businesses.

For the full year, Lowe’s reported earnings per share of $13.76, up from $12.86 in the prior year. Revenue for the year totaled $97.5 billion, up from $96.3 billion in fiscal 2021.

Looking ahead, Lowe’s raised its guidance for fiscal 2023. The company now expects to earn $14.50 to $15.00 per share, up from its previous guidance of $14.25 to $14.75. Lowe’s also expects revenue to grow by 2% to 3%, up from its previous guidance of 1% to 2%.

The company’s strong results and raised guidance are a positive sign for the home improvement market. Homeowners are continuing to invest in their homes, and Lowe’s is well-positioned to benefit from this trend.

Here are some additional highlights from Lowe’s earnings report:

• Comparable sales increased by 5.1% in the fourth quarter.
• Pro sales increased by 14.1% in the fourth quarter.
• The company opened 17 new stores in fiscal 2022.
• Lowe’s expects to open 50 new stores in fiscal 2023.