Lowe’s Adds $5 Billion to Repurchase Program After Profit RisesNick Turner
Lowe’s Cos., the second-largest U.S. home-improvement retailer, plans to buy back $5 billion of its shares, moving to reward investors after profit topped estimates last quarter.
The new repurchases will add to the previous buyback program, which had a balance of $2.4 billion as of the end of January, Lowe’s said in a statement on Friday.
The move follows a 47 percent profit gain last quarter, when rising housing values encouraged homeowners to renovate their properties. The growth indicated that Lowe’s was keeping pace with Home Depot Inc., its larger rival, which also beat analysts’ estimates in the most recent quarter.
Lowe’s stock rose as much as 1 percent to $76 in late trading after the announcement. Shares of Mooresville, North Carolina-based company have gained 9.3 percent this year.