Lowe's Companies (LOW) unveiled a new $15 billion share buyback plan Wednesday, while confirming its full-year profit targets, ahead of its annual investor event in New York.
Lowe's, which posted better-than-expected third quarter earnings thanks in part to surging home improvement demand, said it has approved a new $15 billion buyback that adds to the previous program's $6.4 billion balance as of December 6.
The group also confirmed its full-year profit targets, which include earnings of between $13.65 to $13.80 per share and revenues in the region of $97 billion and $98 billion. Same-store sales, Lowe's said, will either be flat or down 1% from 2021 levels.
"We are building on our momentum with the next chapter of our Total Home strategy, designed to enhance our omnichannel capabilities and position Lowe's as a one-stop shop for DIY and Pro customers to get everything they need across all of their projects," said CEO Marvin Ellison. "We remain committed to our best-in-class capital allocation strategy, centered around investing in our strategic growth imperatives, enhancing returns and delivering long-term shareholder value."
Lowe's shares were marked 1.9% higher in early Wednesday trading to change hands at $205.71 each, trimming the stock's year-to-date decline to around 19.5%.
Last month, Lowe's posted adjusted earnings for the three months ending on October 28 were pegged at $3.27 per share, a 13.5% increase from the same period last year and firmly ahead of the Street consensus forecast of $3.10 per share.
Group revenues, Lowe's said, rose 2.5% to $23.5 billion, narrowly topping analysts' estimates of a $23.1 billion tally. U.S. same-store sales rose 3%, compared to the Refinitiv forecast of a modest 0.8% gain.
The updated followed better-than-expected third quarter earnings from its larger rival, Home Depot (HD), which capitalized on a new wave of remodeling projects, as well as higher prices, amid a broader decline in the U.S. housing market.
Home Depot expects to see 'mid single digit' earnings growth for the full 2022 fiscal year, which ends in January, comparable sales growth of around 3% and operating margins of around 15.4%.
