MOORESVILLE, N.C. (AP) — Lowe’s Cos. said Monday its fiscal fourth-quarter net income rose 13 percent, better than analysts expected, as homeowners took on more home-improvement projects during winter months.
The results are the latest sign that the housing sector may slowly be improving. Last week, Lowe’s larger rival Home Depot Inc. also said its fourth-quarter profit rose, helped by a mild winter across the U.S.
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.
Revenue rose to $11.63 billion from $10.48 billion, topping Wall Street’s estimate of $11.35 billion.
The Mooresville, N.C., company said that an extra week in the period contributed $766 million to its sales and about 5 cents per share to its earnings.
Revenue at stores open at least a year rose 3.4 percent, with the figure increasing 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.
Its shares rose 52 cents, or 1.9 percent, to $27.68 in premarket trading.
