Lowe’s Sees Profit Climb 20%

Fueled by the nation’s strong housing market, fiscal second-quarter profit for No. 2 home improvement retailer Lowe’s Cos. jumped 20%, the company said Monday, beating Wall Street estimates.

Net income grew to $838 million, or $1.05 a share, in the period ended July 29, from $700 million, or 87 cents, in the same quarter in 2004. Revenue rose 17% to $11.93 billion as sales at stores open at least a year increased 6.5%.

Analysts surveyed by Thomson Financial expected earnings of $1.02 a share on revenue of $11.81 billion.

Gains in installed items, special orders and sales to commercial business customers helped boost results, the company said.

Sales at stores open at least a year increased as “homeowners completed some of their spring weather-delayed projects,” Chairman and Chief Executive Robert Niblock said.

Shares of the Mooresville, N.C.-based company rose 71 cents to $65.90.

Earnings per share will be 76 cents to 78 cents in the fiscal third quarter and $3.31 to $3.37 for the year, Lowe’s said. The consensus estimate of analysts is for earnings of 76 cents a share in the company’s third quarter and $3.29 for all of fiscal 2005.

Home Depot, which is based in Atlanta, is expected to report its second-quarter results today.