Lowe’s Earnings Mixed, Forecast Unchanged

Same-store sales increased 4.3% in the quarter and are up 4.7% for the first half of the year. U.S. same-store sales rose 4.6% in the quarter and are up 4.9% for the first six months of the year.

The company reaffirmed that full-year 2015 sales are expected to rise 4.5% to 5.0% year over year, and same-store sales are pegged to increase 4.0% to 4.5%. Diluted earnings per share continue to be forecast at approximately $3.29, compared with 2014 EPS of $2.70. The consensus analysts’ estimate for EPS is currently $3.28 and the revenue estimate is $58.79 billion. Lowe’s posted sales of $56.22 billion in 2014, and using the range the company forecast Wednesday morning, 2015 sales should come in between $58.75 billion and $59.03 billion.

Lowe’s CEO, Robert Niblock, said:

We posted solid results for the quarter and were able to capitalize on big-ticket market share opportunities with strong growth in categories like appliances and outdoor power equipment. … Our year-to-date earnings per share performance was in line with our expectations. This, together with the execution of our strategic priorities, gives us confidence in our Business Outlook for 2015.

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The company said it repurchased $1.5 billion worth of stock under its share buyback program and paid $18 million in dividends in the second quarter.

Shares of Lowe’s traded down about 1.3% Wednesday morning, at $72.10 in a 52-week range of $49.40 to $76.25. Thomson Reuters had a consensus analyst price target of $79.09 before the results were announced. The highest price target is $88.00.