By Dhirendra Tripathi
Investing.com – Lowe’s stock (NYSE:LOW) traded nearly 2% higher in Wednesday’s premarket as strong demand for tools and building materials drove the company’s third-quarter sales and earnings past analysts’ estimates.
The home improvement retailer also raised its annual guidance and expanded its buyback program by $3 billion to $12 billion.
Lowe’s, like larger rival Home Depot (NYSE:HD), benefited from a strong housing market that incentivized both buyers and sellers to fix up their places, not least to improve the possibilities for working from home.
Lowe's said it expects 2021 total sales of about $95 billion, compared to a previous forecast of about $92 billion. That's around 33% higher than in 2019, the last full year before the pandemic.
Total sales for the third quarter ended October 29 were $23 billion compared to $22 billion in the same period of 2020. Home Depot’s total sales were nearly 10% higher on the year at $36.8 billion.
Lowe’s consolidated same-store sales rose 2.2% with U.S. comparable sale growing 2.6%. Adjusted profit per share was $2.73, three times last time’s, and gross margins were higher at 33%.