Lowe's (LOW) shares were gently lower after the home-improvement chain reported fiscal-first-quarter net income exceeded analyst estimates while total revenue lagged expectations.
Sales in the quarter "were in line with our expectations, excluding our outdoor seasonal categories," which were hurt by unseasonably cold weather in April, Chairman, President and Chief Executive Marvin Ellison said in a statement.
"Now that's spring has finally arrived, we are pleased with the improved sales trends we are seeing in May."
For the quarter ended April 29, the Mooresville, N.C., chain earned $3.51 a share, compared with $3.21 a share in the year-earlier quarter. Net sales slipped to $23.66 billion from $24.42 billion.
A survey of analysts by FactSet produced consensus estimates of earnings of $3.22 a share on revenue of $23.76 billion.
Comparable sales slipped 4%. The FactSet survey had been looking for a decline of 2.5%.
At last check Lowe's shares were trading off 2.1% around $190. The stock's 52-week low around $182 was set last August.
On Tuesday rival Home Depot (HD) posted stronger-than-expected first-quarter earnings and boosted its full-year profit guidance amid a still-elevated domestic housing market.
Lowe's affirmed its outlook for fiscal 2023. The company expects to earn $13.10 to $13.60 a share on revenue of $97 billion to $99 billion. A 53rd week in the current fiscal year should add $1 billion to $1.5 billion to total sales.
The FactSet survey for the fiscal year is looking for earnings of $13.34 a share on revenue of $98.11 billion.
