Lowe's Meets Q4 Views On Solid Home Improvements

Shares of Lowe's ( LOW) moved higher in early trading in the stock market after the home improvement retailer met fourth-quarter sales and earnings views, helped by the rebounding U.S. housing market.

The Mooresville, N.C.-based company turned in its third straight quarter of solid results even as it had to deal with harsh winter weather in many U.S. markets.

Lowe's logged Q4 earnings of 31 cents a share, excluding items. That was up from 26 cents the prior year and in line with consensus views. Revenue gained 6% to $11.66 billion vs. estimates for $11.67 billion. Same-store sales climbed 3.9%.

In a statement, Chief Executive Robert Niblock said the company produced a solid performance in its core home improvement categories, which have gotten a lift in recent quarters from a recovering housing market. Those categories helped offset softer sales of seasonal gifts and holiday decorations.

'When extreme winter weather arrived late in the quarter, our distribution network responded quickly and efficiently to move product where it was most needed,' Niblock said.

Lowe's has now posted three straight quarters of revenue and EPS gains. During the preceding four quarters, it logged flat or lower revenue three times and lower earnings twice.

Its results followed those of No. 1 home improvement retailer Home Depot ( HD), which reported Q4 earnings on Tuesday.

Home Depot posted earnings of 73 cents a share, up from 67 cents the prior year and 2 cents above consensus views. But revenue fell 3% to $17.7 billion, hurt by one fewer week vs. the prior year and just shy of estimates for $17.9 billion.

Same-store sales at all Home Depot locations climbed 4.4% during the quarter. Comps in the U.S. gained 4.9%.

Both retailers took a hit from cold and snowy weather across many markets, which contributed to a dip in new home starts in both December and January, according to data from the Commerce Department.

Lowe's shares rose 6% to a three-month high of 50.91 in early trading Wednesday.

Home Depot shares climbed nearly 2% to 82.28 after rising 4% on Tuesday. The stock is near the all-time high of 82.57 established on Jan. 2.