Lowe's Rallies on Impressive Earnings
Shares of hardware store Lowe's (NYSE: LOW) surged on Monday, up some six percent, after the company posted impressive earnings. The retailer also boosted its outlook for the year.
Earnings per share came in higher expected, at $0.40 per share -- $0.35 was anticipated. Likewise, revenue beat at $12.07 billion, more than the estimate of $11.90.
Lowe's increased its outlook for same-store sales to one percent, up from the 0.5 percent figure it had previously forecast.
On its earnings call, Lowe's said that the housing market was continuing to rebound, and that repairs from Hurricane Sandy would continue into 2013.
If traders had looked to Home Depot to take their positions on Lowe's, they might have profited handsomely. Home Depot reported similarly impressive earnings last week, and saw a similar rally.
Some traders and analysts grew cautious on Home Depot ahead of its earnings report, as shares of the company have set new highs. A quick glance at the chart of the retailer (see below) reveals a rapid and sustained move higher -- perhaps indicating that shares could soon plummet back to earth.
But that hasn't been the case, and the move in Lowe's on Monday supports that.
A rebounding housing market in the U.S. appears to be driving demand for the goods that both Home Depot and Lowe's sells. The Hurricane Sandy rebuilding effort may be benefitting the companies as well.
Shares of Lowe's traded near $34 on Monday.
Chart Courtesy of Yahoo Finance
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.