Lowe's Beats Expectations, Raises Guidance, Spends $8.8 Billion To Boost Pro Customer Offerings

Lowe’s Companies Inc LOW reported better-than-expected sales and earnings for the second quarter, while raising its full-year guidance and unveiling a significant acquisition.

The Lowe’s Companies Analyst: JPMorgan analyst Christopher Horvers reiterated an Overweight rating on the stock.

The Lowe’s Companies Thesis: The company reported earnings of $4.33 per share, up 5.7% year-on-year. That’s about 2% higher than consensus, Horvers said in the note.

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Comps of +1.1% came in-line with Street expectations, while big-ticket purchases of over $500 outperformed the overall business, he added.

Lowe's raised its full-year earnings guidance to $12.20-$12.45 per share. The earlier projection hovered between $12.15 and $12.40 per share, versus consensus of $12.23 per share, the analyst stated.

The company announced the acquisition of Foundation Building Materials for $8.8 billion in cash.

Horvers expects the deal to be accretive to EPS in the first year and represents a “push into large Pro planned purchases.”

Price Action: Shares of Lowe’s Companies had risen by 0.69% to $258.13 at the time of publication on Wednesday.

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