NEW YORK — Lowe’s Cos., the second-largest U.S. home-improvement retailer, posted third-quarter profit that topped analysts’ estimates as the housing market’s continued growth encouraged homeowners to spend on renovations.
Net income rose 17 percent to $585 million, or 59 cents a share, in the quarter ended Oct. 31, from $499 million, or 47 cents, a year earlier, the Mooresville, N.C.-based retailer said Wednesday in a statement. The average of 25 analysts’ estimates compiled by Bloomberg was 58 cents a share. Sales rose 5.6 percent to $13.7 billion, topping the average projection.
Chief Executive Officer Robert Niblock has taken advantage of years of rebounding home values by adding workers in stores to help customers with projects. Same-store sales, an important measure of performance because only established locations are counted, rose 5.1 percent in the quarter, topping the 4.1 percent average of estimates compiled by Consensus Metrix.
The company raised its forecast for profit in the year through Jan. 30 to about $2.68 a share. Analysts estimated $2.63 a share, matching Lowe’s previous projection. Same-store sales may rise 3.5 percent to 4 percent, up from an earlier forecast for a 3.5 percent gain.