Lowe’s (LOW), the home improvement store, just reported quarterly earnings of 32 cents a share. That’s a good bit down from the 41 cents from a year ago. However, the expectations on Wall Street were for just 25 cents a share, so this was an encouraging report.
The stock rallied 8% today and this might be a sign that the economy may not be as bad as some economists believe. The company’s CEO said, “In recent weeks we have seen consumer confidence improve, housing turnover show signs of a bottom in certain markets, and home prices slow their decline.”
Fortunately, the company didn’t aggressively mark down items like it did in the fourth quarter. For the first quarter, sales fell 2% to $11.83 billion. I currently rate Lowe’s a Buy.