Lowe's (LOW.US) stock rose more than 2.5% in premarket after the US home improvement chain reported stronger than expected fourth quarter results and issued an upbeat 2022 outlook as the company took over market shares from its larger rival.
- Earnings per share: $1.78 vs. $1.71 expected. Significant improvement from $1.32 per share, in last year's fourth quarter.
- Revenue: increased 4.9% to $21.34 billion vs. $20.90 billion expected
- U.S. same-store sales rose 5%, compared to the Refinitiv forecast of a 3.1% decline.
- "We remain confident in the long-term strength of the home improvement market, and our ability to expand operating margin," said CEO Marvin Ellison.
- Lowe's biggest competitor Home Depot Inc. (HD.US) also recorded quarterly sales and earnings growth yesterday, however stock posted the biggest percentage decline among S&P 500 members amid concerns regarding profit margins and weak 2022 outlook.
- Company forecast earnings per share to range from $13.10 to $13.60 on revenue of $97 billion to $99 billion in the current fiscal year. Previously Lowe expected earnings per share of $12.94 on revenue of $97 billion for the year.
Lowe's (LOW.US) stock dropped below the long-term upward trendline yesterday, however buyers managed to halt declines around local support at $214.00 which coincides with 23.6% Fibonacci retracement of the upward wave launched in March 2020. Currently price is retesting the aforementioned trendline. Should a break higher occur, another upward impulse towards all-time high at $262.70 may be launched. Source: xStation5
