Lowe’s Profit Tops Estimates on Online Growth, Sales to Pros

Core Insights - Lowe's reported adjusted earnings per share of $3.06 for the third quarter, exceeding analysts' expectations of $3.00, driven by increased online sales and demand from professional contractors [1] - The company experienced positive same-store sales growth for the second consecutive quarter, attributed to strength in its digital channel and home services, along with continued growth in sales to professional contractors [1][2] - Lowe's shares rose by as much as 5.7% in premarket trading, despite an overall decline of 11% this year amid a broader consumer pullback in discretionary spending [3] Professional Business Expansion - Lowe's enhanced its professional business through an $8.8 billion acquisition of Foundation Building Materials, which strengthens its market position with contractors who typically have higher purchasing frequency and volume [4] Adjusted Profit Forecast - The company revised its full-year profit target to approximately $12.25 per share, adjusting from a previous range of $12.20 to $12.45 per share, to reflect uncertain economic conditions and the impact of the recent acquisition [5] Market Context - Analysts note that a significant rebound in home-improvement spending has not yet occurred, with cautious consumer behavior and a stagnant housing market contributing to this trend. However, Lowe's focus on productivity and investments in e-commerce and professional channels positions it favorably for a potential market recovery [6]