Lowe’s beat estimate as higher-spending drives profit, shares soar 10%


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Lowe’s beat estimate as higher-spending drives profit, shares soar 10%

On Wednesday, the 21st of August 2019, Mooresville-based US retailer, Lowe’s, specialized in home improvement with 2,002 brick-and-mortar stores across the United States, reported a much better-than-anticipated quarterly earnings’, which drove its shares up by more than 10 percent to a record $108.00 per share, while retailing industry analysts had been quoted saying that the Lowe’s Cos Inc.’s higher-spending consumers had helped the home improvement chain store gain a higher ground in contrast to its larger rival Home Depot Inc.

Nonetheless, Lowe’s US rival, Home Depot had also beaten quarterly earnings’ estimate for Q2, 2019, on Tuesday (August 20th) citing buoyant sales of its costlier items, however, warned that a US-China trade drama entering into its second year would likely to hurt consumers’ demand and slashed its full-year earnings’ forecast.

On the contrary, adding that the US tariffs on some of the Chinese imports, scheduled to take place by September 1st would unlikely to rattle its full-year earnings’ forecast between $5.45 to $5.65 per share. Aside from that, on Wednesday’s (August 21st) market closure, boosted up by a solid quarterly earnings’ report, shares of Lowe’s mushroomed as much as 12.22 percent during pre-market trading before wrapping up the day 10.16 per cent higher to $108.00 per share, while expressing an out-and-out optimism over Lowe’s full-year earnings’ projection amid a much-lower mortgage rate, a managing director of GlobalData Retail, Neil Saunders commented later on Wednesday (August 21st), “Under Ellison, retail basics such as in-stocks, merchandising and customer service are all being improved. ”