Lowe's Beats Earnings Expectations, Reaffirms Full-Year Outlook

Lowe's on Wednesday reported quarterly results that beat expectations on the top and bottom lines and reaffirmed its full-year outlook.

Shares of the company sank slightly in premarket trading.

Here's how the company performed in its first fiscal quarter compared with Wall Street estimates, according to a survey of analysts by LSEG:

Earnings per share: $3.03 adjusted vs. $2.97 expected

Revenue: $23.08 billion vs. $22.97 billion expected

For the three-month period ended May 1, Lowe's reported net income of $1.63 billion, or $2.90 per share, down just slightly from $1.64 billion, or $2.92 per share, in the year-ago period. Excluding one-time factors like acquisition costs, the company reported adjusted earnings per share of $3.03.

Revenue jumped about 10% compared to the previous year. Comparable sales increased 0.6% for the quarter, driven by what Lowe's said was its spring execution and a 15.5% growth in online sales. Strength in appliances, home services and sales to home professionals like contractors also contributed to its performance.

"In spite of a challenging housing macro, we remain focused on advancing our Total Home strategy to provide the best experience for our customer," CEO Marvin Ellison said in a statement.

The company also reaffirmed its full-year guidance, expecting total sales between $92 billion and $94 billion, an increase of between 7% and 9% compared to the prior year. It expects comparable sales to be flat to up 2% compared to last year.

Lowe's said it expects adjusted earnings per share of between $12.25 and $12.75 for the full year.

The earnings come against a backdrop of housing market struggles and consumer caution as gas prices soar.

In February, Lowe's cut roughly 600 corporate and support roles as the company said it wanted to focus more on its store employees and align its resources.