Resurgent housing industry boosts Lowe's earnings

Lowe's recorded increases in sales and profit during the third quarter, as the resurgent housing industry bolstered the retailer's bottom line.

The home renovation giant (LOW) reported sales of $14.4 billion for the third quarter, up 5% compared to the same period a year earlier.

Net earnings rose 25.8% to $736 million. The company posted diluted earnings per share of 80 cents, up 35.6%.

Sales at stores open at least a year — typically viewed as a gauge of a retailer's health — rose 4.6%.

The steady performance tracked for Lowe's came a day after rival Home Depot reported very similar results. Both companies are reaping the benefits of a strong housing industry and consumer sentiment, as homeowners green-light renovation projects and buildings construct new homes.

"This is an exciting time for Lowe's as we continue to execute our strategic priorities alongside a favorable macroeconomic backdrop," Lowe's CEO Robert Niblock said in a statement. "I am pleased that we delivered another solid quarter."

Lowe's, which operates 1,849 stores in North America, expects its total sales to rise 4.5% to 5% for the its full fiscal year. Comparable sales will rise 4% to 4.5%.

The company's stock rose 1.7% in early pre-market trading to $74.05.

Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.