Lowe's raises profit forecast, shares gain

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© Reuters. A Lowe's retail store is shown in Carlsbad, California© Reuters. A Lowe’s retail store is shown in Carlsbad, California

(Reuters) – Lowe’s Cos Inc (N:) raised its full-year earnings forecast on Wednesday, as the home improvement chain’s increased assortment of industrial products like drills and power saws attracted more high-spending building contractors and handymen.

Shares of the Mooresville, North Carolina-based company rose nearly 6% to $120.10 in premarket trading.

Lowe’s also retained its full-year revenue and comparable sales forecasts, a day after larger rival Home Depot Inc (N:) cut its expectations for sales.

Lowe’s said it will close 34 underperforming stores and reorganize its corporate structure in Canada as part of Chief Executive Officer Marvin Ellison’s plan to improve profitability.

Excluding items, the company earned $1.41 in the third quarter, beating estimates of $1.35, according to IBES data from Refinitiv.

Lowe’s raised its 2019 adjusted earnings forecast to $5.63 to $5.70 per share, from prior expectations of $5.45 to $5.65.

However, Lowe’s missed same-store sales expectations. They rose 2.2% in the third quarter ended Nov. 1, below expectations of a 3.1% increase.

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