Lowe's jumps on quarterly profit beat despite lower sales forecast
LOW•Shares rise after profit beat
Shares of Lowe's LOW.N rose 4% at $225.24 in morning trading after the home improvement firm beat estimates for quarterly profit, supported by tariff refunds and strong performance in its professional contractor segment.
Quarterly results and guidance
Lowe's reported Q2 adjusted EPS of $4.40 including tariff gains, beating analysts' average estimate of $4.22, according to data compiled by LSEG. Q2 sales of $25.96 billion missed estimates of $26.16 billion.
LOW sees FY adjusted EPS of $12.25, at the lower end of expectations as consumers stay cautious on costly renovation and discretionary spending. The forecast includes tariff refunds received during Q2.
Analyst comment and stock performance
"2Q comps missed Street, though margins were better than expected due to tariff refunds," Jefferies analysts said.
Up to the last close, the stock was down about 11% year to date. The stock fell in premarket trading owing to the muted forecast.
