Lowe’s Shares Slide on Lower Q2 Profit, Revenue

The company also trimmed its outlook for the full year

   

Lowe’s Shares Slide on Lower Q2 Profit, Revenue

Lowe’s (NYSE:LOW) announced on Monday that it earned $747 million during the second quarter, down 10% from $830 million in the same period last year.

The home improvement retailer recorded revenue of $14.25 billion, down 2% from 2011. That disappointed Wall Street, which was expecting $14.44 billion in revenue, the Associated Press noted.

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Adjusted EPS for the quarter was 68 cents. That also fell short of the 70 cents analysts had forecast.

Lowe’s estimates fiscal 2012 earnings of $1.64 a share, down from earlier estimates between $1.73 and $1.83 a share. Revenue for the year is anticipated to remain unchanged from 2011, also down from earlier projections of between 1% and 2% growth.

Investors were unimpressed. Lowe’s shares fell more than 4% in Monday morning trading.

The company attributed lower earnings, in part, to charges resulting from payroll reductions and a one-week-shorter fiscal year in 2012, which cut earnings by roughly 3 cents a share and revenue by 1.8%.

Overall same-store sales slipped 0.4% compared to last year. Sales at U.S. stores edged just 0.2% lower.

Last week, Home Depot (NYSE:HD) reported increased profits and raised its outlook for the year.


Article printed from InvestorPlace Media, http://investorplace.com/2012/08/lowes-shares-slide-on-lower-q2-profit-revenue/.

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