NEW YORK (TheStreet) -- Shares of Lowe's Companies Inc. (LOW) are down -2.47% to $50.25 after the home improvement products retailer cut its sales forecast for the year as it could not make up for the sales missed during the prolonged North American winter, Reuters reports.
Lowe's lowered its sales growth forecast to about 4.5% from about 5% for the year ending January, taking into account its sales so far this year.
The company also reduced its same-store sales growth forecast for the year by half a percentage point to about 3.5%.
Lowe's same-store sales were up 4.4% in the second quarter. Analysts polled by Consensus Metrix had expected a 4.1% increase.
Net income rose to $1.04 billion, or $1.04 per share, from $941 million, or 88 cents per share, a year ago. Revenue gained 5.6% to $16.59 billion.
Analysts on average had expected earnings of $1.02 per share on revenue of $16.55 billion, according to Thomson Reuters I/B/E/S.
TheStreet Ratings team rates LOWE'S COMPANIES INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate LOWE'S COMPANIES INC (LOW) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."