China considers same tax rate for domestic, overseas firms (AFP)
AFP - Chinese lawmakers have mulled a draft law that would impose a 25 percent income tax on both domestic and foreign firms, eliminating the preferential rate for overseas companies, according to state media.
Lowe's profit beats Wall St view (Reuters)
2008.08.18By Karen Jacobs 21 minutes ago
ATLANTA (Reuters) - Retailer Lowe's Cos (LOW.N) reported a higher-than-expected quarterly profit on Monday, helped by U.S. consumers spending tax rebate checks, and raised its full-year forecast, sending shares up about 2 percent.
Lowe's, the second-largest home-improvement chain behind Home Depot Inc (HD.N), also forecast earnings for the third quarter below current Wall Street estimates.
Home-improvement retailers have posted weak results as a slumping U.S. housing market, tightening credit and rising gas and food costs pressure consumers. The second quarter marked the fourth-straight quarterly profit decline for Lowe's.
But Lowe's profit still topped Wall Street forecasts as consumers used their tax rebates for spring projects, and its sales performance for stores open at least a year was also better than some analysts had expected.
The company's earnings fell to $938 million, or 64 cents a share, for the quarter ended August 1, from $1.02 billion, or 67 cents a share, a year earlier. Analysts on average forecast earnings of 56 cents a share, according to Reuters Estimates.
Total sales rose 2.4 percent to $14.5 billion, higher than the $14.1 billion analysts expected, as consumers worked on their lawns and gardens.
Sales at stores open at least a year, an important retail measure, fell 5.3 percent, hurt by weakness in big-ticket projects such as kitchen renovations. But some analysts had predicted a drop of as much as 7 percent.
"Lowe's bucked the trend of its linkage to housing turnover, as same-store sales recovered nicely at a moment when historical trends suggested they should have been troughing," Goldman Sachs analyst Matthew Fassler said in a research note.
Lowe's also cited market share gains for its second-quarter beat, but said it felt a cautious sales forecast for the rest of the year was prudent.
Lowe's, based in Mooresville, North Carolina, said it now expects a full-year profit of $1.48 to $1.56 a share, compared with the $1.45 to $1.55 a share it forecast in May.
For the third quarter, Lowe's expects profit of 27 cents to 31 cents a share.
Analysts expected profit of 33 cents a share for the third quarter and $1.50 a share for the year.
Walter Todd, a principal and portfolio manager with Greenwood Capital in Greenwood, South Carolina, said that Lowe's full-year outlook could actually indicate a slower second-half, given the weight of stronger second-quarter results.
"They effectively lowered the guidance for the second half," he said.
Home Depot is due to report quarterly results on Tuesday.
Lowe's shares rose 50 cents to $25 in early trading from their close of $24.50 on Friday.
(Editing by Dave Zimmerman)
Top News
More articles on this topic:
China says to continue stable monetary policy (Reuters)
Reuters - China's central bank said on Monday that it would continue to take steps to keep investment and credit growth in check, while pressing ahead with efforts to make the value of its currency more market-driven.
Reuters - China's central bank said on Monday that it would continue to take steps to keep investment and credit growth in check, while pressing ahead with efforts to make the value of its currency more market-driven.
Economic growth concerns drag down indexes (Reuters)
Reuters - U.S. stocks dropped on Friday as concerns about slowing economic growth persisted, causing investors to sell shares of bellwether companies such as plane maker Boeing Co. and leaving all three major indexes in the red for the week.
Reuters - U.S. stocks dropped on Friday as concerns about slowing economic growth persisted, causing investors to sell shares of bellwether companies such as plane maker Boeing Co. and leaving all three major indexes in the red for the week.
Russia tax office files suit vs PWC on YUKOS audit (Reuters)
Reuters - Russian tax authorities have filed a suit against the local branch of PricewaterhouseCoopers (PwC) accusing it of producing a false audit for fallen oil company YUKOS, the auditor said on Monday.
Reuters - Russian tax authorities have filed a suit against the local branch of PricewaterhouseCoopers (PwC) accusing it of producing a false audit for fallen oil company YUKOS, the auditor said on Monday.
Japan keeps view that economy is recovering (Reuters)
Reuters - The Japanese government kept its assessment of the economy unchanged in a monthly report on Monday, after downgrading it for the first time in almost two years last month.
Reuters - The Japanese government kept its assessment of the economy unchanged in a monthly report on Monday, after downgrading it for the first time in almost two years last month.
