Lowe’s Companies Inc. (NYSE: LOW) released its fiscal first-quarter financial results before the markets opened on Wednesday. The home improvement retailer said that it had $1.77 in earnings per share (EPS) and $19.7 billion in revenue. That compared with consensus estimates of $1.31 in EPS and $18.08 billion in revenue. In the same period of last year, the company said it had EPS of $1.22 on $17.74 billion in revenue.
During the latest quarter, comparable sales increased 11.2% year over year. Comparable sales specifically for the U.S. home improvement business increased 12.3%.
Considering the uncertain economic outlook, Lowe’s raised $4 billion in senior unsecured notes and increased the capacity of its revolving credit facilities by $770 million. After repaying $500 million of fixed-rate notes due April 15, 2020, the company now has $6.0 billion of cash and cash equivalents, as well as $3 billion in undrawn capacity on its revolving credit facilities, which will be available for any unanticipated liquidity needs.
Lowe’s also decided to suspend share repurchases. It does not expect to repurchase any more shares this year beyond what was executed in the first quarter. The company repurchased 9.6 million shares for $947 million under its share repurchase program, and paid $420 million in dividends in the first quarter.
The company did not issue guidance for the fiscal 2020 full year. Consensus estimates call for $5.92 in EPS and $72.57 billion in revenue for the year.
Marvin R. Ellison, Lowe’s president and CEO, commented:
In late February, we shifted our priorities in response to the COVID-19 pandemic, and immediately focused on how best to serve the needs of our communities during this unprecedented time. Our highest priority remains the health and safety of our associates and community, and we have demonstrated that commitment in the first quarter through an investment of $340 million, including support for healthcare workers and first responders.
Lowe’s stock traded up almost 3% early Wednesday to $120.17 a share. The 52-week range is $60.00 to $126.73, and the consensus price target is $116.56.
In 20 Years, I Haven’t Seen A Cash Back Card This Good
After two decades of reviewing financial products I haven’t seen anything like this. Credit card companies are at war, handing out free rewards and benefits to win the best customers.
A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges.
Our top pick today pays up to 5% cash back, a $200 bonus on top, and $0 annual fee. Click here to apply before they stop offering rewards this generous.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.