Lowe’s (NYSE:LOW) shares surged Wednesday after the home improvement retailer’s second-quarter earnings report beat Wall Street forecasts and topped rival Home Depot (NYSE: HD) on same-store sales growth in the U.S
The report — which exceeded analyst estimates on earnings, revenue and same-store sales — showed that changes made by CEO Marvin Ellison have started to take root and draw more customers.
Adjusted earnings per share achieved $2.15, as opposed to the $2.01 estimated. Revenue registered at $20.99 billion, compared to the $20.94 billion estimated. Same store sales were up 2.3%, compared to an estimated improvement of 1.9%.
"We capitalized on spring demand, strong holiday event execution and growth in paint and our pro business to deliver strong second quarter results," said Marvin Ellison, who became CEO just over a year ago
Lowe’s earnings guidance for the fiscal year ending Jan. 31 remained the same: adjusted earnings per share ranging from $5.45 to $5.65.
Lowe’s net income rose 10% to $1.68 billion, or $2.14 a share, during the fiscal quarter ended Aug. 2, compared with $1.52 billion, or $1.86 a share, a year earlier. Excluding one-time items, it earned $2.15 a share, surpassing analyst expectations by 14 cents.
Earlier this month, Lowe’s announced plans to lay off thousands of workers, and last year said it is shuttering stores to reduce costs.
Ellison’s initiatives also include the creation of a technology hub in Charlotte, North Carolina, that will house as many as 2,000 workers.
Shares galloped $10.15, or 10.4%, to $108.19
