by Christopher Freeburn | August 20, 2012 10:06 am
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.
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.
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