Please ensure Javascript is enabled for purposes of website accessibility

Why Lowe's Companies Inc. Stock Rose 11% Last Month

By Jeremy Bowman - Apr 10, 2017 at 1:36PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The home-improvement retailer surged on a strong fourth-quarter earnings report.

What happened

Shares of Lowe's Companies Inc. (LOW 0.53%) were stacking higher last month after the home-improvement retailer delivered an impressive fourth-quarter earnings report. According to data from S&P Global Market Intelligence, the stock finished up 10.5%. 

The entrance to a Lowe's store

Image source: Lowe's.

As the chart below shows, the stock's gains came almost entirely at the beginning of the month following the earnings report.

LOW Chart

LOW data by YCharts.

So what 

Lowe's turned in stellar results on all counts. Comparable sales at the home-improvement retailer accelerated to 5.1%, its fastest pace in several quarters, and overall revenue increased 19.2% to $15.8 billion, which topped estimates at $15.4 billion. The jump in sales was largely attributable to its acquisition of Canadian home-improvement retailer RONA last year, which added nearly 500 stores to Lowe's portfolio.

On the bottom line, adjusted earnings per share surged 45.8% to $0.86 from $0.59 a year ago. CEO Robert Niblock credited the company's "omni-channel platform, customer experience design capabilities, and project expertise."

Now what 

Looking ahead, Niblock said 2017 presented a "favorable macroeconomic backdrop for home improvement," and the company's guidance confirmed that view, calling for an overall sales increase of 5% and comparable sales growth of 3.5%. Lowe's plans to open 35 new stores and calls for earnings per share of $4.64, up from $3.99 last year.

With an expanding economy and strong housing market, Lowe's stock looks primed to deliver in 2017 again, continuing its momentum from last quarter.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Lowe's Companies, Inc. Stock Quote
Lowe's Companies, Inc.
$185.67 (0.53%) $0.98

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/23/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.