NEW YORK (TheStreet) -- Shares of Lowe's Companies (LOW) - Get Lowe's Companies, Inc. (LOW) Report are falling by 3.09% to $65.80 in Wednesday' pre-market trading session, even though profit for the 2015 fourth quarter matched expectations, revenue topped estimates and the company issued strong 2016 sales guidance. 

Earnings came in at 59 cents a share, in line with Wall Street's projections and higher than 46 cents a share the company earned a year ago.

Revenue of $13.24 billion handily beat projections of $13.05 billion and rose from $12.54 billion the year prior.

Similar to competitor Home Depot (HD), which reported better-than-expected fourth quarter profit and revenue yesterday, Lowe's is also benefiting from the recovering housing market and the unseasonably warm weather encouraging customers to renovate homes and participate in outdoor activities.

Lowe's same-store sales in the U.S. increased by 5% in the quarter. But, "As good as (Lowe's) numbers are, comparisons will inevitably be drawn with Home Depot's much stronger results," Conlumino analyst Hakon Helgesen told Reuters.

Going forward, the home improvement chain anticipates sales for the current fiscal year to rise by 6% to $62.62 billion, higher than analysts' growth estimates of 4.8%.

Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of A-. 

TheStreet Recommends

The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, reasonable valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: LOW

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