>>> Lowe's beats by $0.01, reports revs in-line; reaffirms FY15 EPS guidance, gu

--> -2.95% pre market $50 vs $51.52 - 24k shares traded

Lowe's beats by $0.01, reports revs in-line; reaffirms FY15 EPS guidance, guides FY15 revs in-line

Reports Q2 (Jul) earnings of $1.04 per share, $0.01 better than the Capital IQ Consensus Estimate of $1.03; revenues rose 5.7% year/year to $16.6 bln vs the $16.57 bln consensus.
  • Comparable Sales Increased 4.4%
  • Sales for the second quarter increased 5.7% to $16.6 billion from $15.7 billion in the second quarter of 2013, and comparable sales for the quarter increased 4.4%.
  • For the six month period, sales were $30.0 billion, a 4.2% increase over the same period a year ago, and comparable sales increased 2.8%.
Commentary:
"We believe home improvement spending will continue to progress in tandem with strengthening job and income growth," Niblock added. "Our year-to-date sales performance, together with our previous assumptions for the second half of 2014, result in a modest reduction to our sales outlook for the year. Our diluted earnings per share outlook is unchanged, which is a testament to our keen focus on profitability."

Stock repurchases:
Co repurchased $1.1 billion of stock under its share repurchase program and paid $183 million in dividends in the second quarter. For the six month period, the company repurchased $2.0 billion of stock under its share repurchase program and paid $369 million in dividends.

Guidance:
Co issues mixed guidance for FY15
  • Co reaffirms FY15 EPS of $2.63 vs. $2.64 Capital IQ Consensus Estimate
  • Co sees FY15 revs of +4.5% YoY to ~$55.8 bln vs. $55.84 bln Capital IQ Consensus Estimate, down from +5% YoY (or $56.09 bln) prior
  • Comparable sales are expected to increase ~ 3.5%.
  • The company expects to open ~ 10 home improvement and 5 hardware stores.