Lowe’s (NYSE:LOW) released its second-quarter earnings report today, delivering results that beat profit expectations despite a drop in revenue due to ongoing economic challenges.
The company reported adjusted earnings per share of $4.10 for the quarter, surpassing Wall Street’s estimate of $3.96. However, revenue came in lower at $23.59 billion, missing the consensus target of $23.93 billion and declining from $25.0 billion in the same period a year ago.
Comparable sales dropped 5.1% year-over-year, largely due to reduced discretionary spending on high-ticket DIY items and adverse weather affecting seasonal and outdoor product categories. Offsetting some of these losses were positive performances in the Pro and online segments.
In light of the continued economic headwinds, Lowe’s revised its full-year forecast, lowering its expectations for total sales and earnings. The company now projects sales to be in the range of $82.7 to $83.2 billion, down from the previous estimate of $84 to $85 billion. Additionally, adjusted earnings per share are expected to range from $11.70 to $11.90, a reduction from the earlier forecast of $12.00 to $12.30. These revised projections fall short of analysts’ estimates, which had anticipated full-year earnings per share of $12.14 and revenue of $84.16 billion.