Mooresville, NC, United States (AHN) – Lowe’s Companies Inc. (NYSE: LOW) announced Monday fourth quarter earnings rose 26.5 percent as sales grew 2 percent to $10.2 billion. However, first quarter guidance failed to inspire analysts.
The nation’s second largest home improvement chain earned $205 million or 14 cents a share in the fourth quarter, up from 11 cents a share in the same period a year earlier. The result topped analyst estimates for 12 cents a share, according to Thomson Reuters.
The increase in fourth quarter sales to $10.2 billion occurred despite a 1.6 percent drop in same-store sales for the company.
“Our fourth quarter results, including sales and earnings that exceeded our guidance, suggest the worst of the economic cycle is likely behind us,” commented Robert A. Niblock, Lowe’s chairman and CEO.
For the full fiscal year, ended Jan. 31 2010, Lowe’s saw a 2.1 percent decline in sales to $47.2 billion.
“While the psychological impact of falling home prices and an uncertain employment picture continue to weigh on consumers, improving comparable store sales trends, including improvement in many bigger-ticket project categories, provides an encouraging sign that consumers are gaining the confidence to take on more discretionary projects” added Niblock.
Looking forward, Lowe’s expects first quarter earnings of 27 to 29 cents a share and $1.30 to $1.42 a share for fiscal 2010. Both estimates fell short of analyst expectations of 33 cents a share and $1.37 a share.