Lowe's Q3 Profit Falls 24 Percent But Tops Estimates

November 17, 2008 10:46 p.m. EST

Chicago, IL (AHN) - Lowe's Co. announced Monday third quarter earnings fell 24 percent as same-store sales slipped 5.9 percent with consumers hesitant to purchase big-ticket items.

The home improvement company posted third quarter earnings of $488 million or 33 cents a share, compared to $643 million or 43 cents a share in the same period a year earlier.

Revenue edged up to $11.73 billion, up 1.7 percent from $11.57 billion last year. The company said repairs related to the hurricanes in the Gulf Coast helped boost sales.

The results topped analyst estimates for earnings of 28 cents a share on $11.62 billion in revenue, according to Thomson Reuters.

Lowe's said sales in housing markets that have declined the most declined by double digits while the stable markets posted flat results in the third quarter.

"We continue to see the greatest sales weakness in bigger ticket discretionary products and the weakness is most pronounced in areas hardest hit by the housing slowdown," said Lowe's CEO Robert A. Niblock on the earnings conference call.

The company said it saw a slowdown in sales the last week of October with the trend continuing in the first two weeks of November.

Looking ahead, Lowe's expects fourth quarter earnings of 8 to 16 cents a share. Analysts are looking for 18 cents a share.

Shares of Lowe's rose 4.1 percent on Monday to close at $18.99.