Lowe's Tops Q2 Profit Estimates But Offers Lower Outlook For Current Quarter

August 18, 2008 5:32 p.m. EST

Mooresville, NC (AHN) - Lowe's Companies reported Monday an 8 percent drop in second quarter earnings as strong sales helped limit the earnings fall-off. However, the company did offer weaker third quarter guidance.

The home-improvement company posted earnings of $938 million or 64 cents a share, down from $1.02 billion or 67 cents a share in the same period a year earlier. Revenue for the quarter totaled $14.5 billion, up 2.4 percent from $14.17 billion last year.

The results topped analyst estimates, according to Thomson Reuters. The consensus was for earnings of 56 cents a share on $14.1 billion in revenue.

"It was a tough environment out there," said chairman and CEO Robert Niblock, according to the Associated Press. "I'm real proud of the team and the results we delivered in light of the environment."

Sales were strong for lawn and garden products but big ticket items continue to see a drop off in sales, the company said.

Lowe's said second quarter results benefited from the impact of fiscal stimulus checks.

The company expects earnings for the third quarter to range from 27 cents to 31 cents a share. Analysts are expecting 33 cents a share.

Shares of Lowe's traded relatively flat Monday at $24.55 a share.