Lowe’s stock rallies after profit and sales rise well above expectations

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Shares of Lowe’s Companies rallied 1.6% in premarket trading Wednesday, after the home improvement retailer reported fiscal second-quarter profit and sales that rose well above expectations, boosted by a consumer focus on the home, repair and maintenance activities during the COVID-19 pandemic. Net income increased to $2.83 billion, or $3.74 a share, from $1.68 billion, or $2.14 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to $3.75, above the FactSet consensus of $2.92. Sales rose 30.1% to $27.30 billion, beating the FactSet consensus of $24.32 billion. Same-store sales shot up 34.2%, above the FactSet consensus of 16.3%, while U.S. same-store sales growth of 35.1% topped nearly tripled expectations of an 11.9% rise. Although the company didn’t provide financial guidance, it said “sales momentum continues into August.” The stock has soared 31.9% year to date through Tuesday, while shares of rival Home Depot Inc. have climbed 30.5% and the S&P 500 has gained 4.9%.
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