Ashida Associates - Lowes Stock Gains on Q1 Earnings Results.
Added: (Tue Jun 21 2016)
Pressbox (Press Release) -
Ashida Associates - Home improvement company, Lowe's posted better-than-expected quarterly sales thanks to buoyancy in the housing market and good weather supporting strong demand for construction and home improvement products.
The company’s results came after larger rival, Home Depot also reported better-than-expected results earlier in the week.
The company’s stock rose more than 3% Wednesday. Earnings from home improvement companies seem the diametric opposite to those of their counterparts in retail. Macy's quarterly results showed that US consumers are moving away from apparel and accessories towards larger ticket items like cars and other durable goods.
“Macy’s earnings weren’t disastrous but their guidance for the current quarter was dreadful and provided a reminder of the challenges facing bricks and mortar retailers in the face of the ascendance of online retailers like Amazon,” said a Ashida Associates analyst.
Lowe's reported first-quarter earnings of 98 cents per share compared with 70 cents a share in the year-earlier period. Revenue for the quarter came in at $15.2 billion, compared with the $14.13 billion it posted in the same period last year.
Consensus forecasts saw Lowe's reporting earnings of about 85 cents a share on $14.87 billion in revenue so the beat was impressive,” said the Ashida Associates analyst.
“We don’t see the bounce in the housing market or the improvement alluded to by the recent data as being sustainable over the long run. Cyclically, the US economy ought to be heading for a contraction in activity. This so-called recovery is positively ancient,” concluded the Ashida Associates analyst.