Lowe's 4Q net income climbs, revenue increases

Friday, February 24, 2012, Vol. 36, No. 8

MOORESVILLE, N.C. (AP) — Lowe's Cos.' fiscal fourth-quarter net income rose 13 percent on an 11 percent rise in revenue, helped by an extra week in the period compared with a year ago.

The results beat Wall Street estimates and the home improvement company forecast fiscal 2012 revenue above Wall Street's expectations.

Its shares gained 36 cents, or 1.3 percent, to $27.52 in premarket trading Monday.

Lowe's reported net income of $322 million, or 26 cents per share, for the period ended Feb. 3. That's up from $285 million, or 21 cents per share, a year earlier.

The current quarter included 3 cents per share for store closings and other items. Removing those items, earnings were 29 cents per share.

Analysts predicted earnings of 24 cents per share, according to a FactSet survey. Analysts estimates typically exclude unusual items.

The Mooresville, N.C., company said that the extra week in the period contributed $766 million to its sales and about 5 cents per share to its earnings.

Lowe's performance was likely also given a boost by the mild winter weather across the U.S., which Home Depot Inc. said last week helped its fourth-quarter profit increase as homeowners spent more on renovation projects.

Lowe's said its revenue rose to $11.63 billion from $10.48 billion, topping Wall Street's estimate of $11.35 billion.

Revenue at stores open at least a year climbed 3.4 percent, with the figure rising 3.5 percent in the U.S. This metric is a key indicator of a retailer's health because it excludes results from stores recently opened or closed.

For the full year, Lowe's earnings declined 9 percent to $1.84 billion, or $1.43 per share, from $2.01 billion, or $1.42 per share, a year earlier. Annual revenue rose 3 percent to $50.21 billion from $48.82 billion.

Revenue at stores open at least a year was basically flat.

Lowe's predicts fiscal 2012 earnings of $1.75 to $1.85 per share. Revenue is expected to rise 1 percent to 2 percent, which implies $50.69 billion to $51.2 billion.

Analysts foresee full-year earnings of $1.81 per share on revenue of $50.23 billion.

Lowe's had 1,745 stores in the United States, Canada and Mexico at the quarter's end.