Not that this should surprise anyone in "flyover country", but high gas prices and a turbulent housing market are taking their toll on businesses and their financial outlook.
Lowe’s Cos., the nation’s second-largest home-improvement chain, said Monday that its second-quarter profit rose 11 percent. But its shares tumbled 4 percent as it cut its full-year earnings outlook, saying higher energy prices and a slowing housing market are crimping consumer spending.
But I still wonder if this is a case of the tale wagging the dog.
OK, so business is up. It might even be good. But someone expected more. So that's a reason to become negative?
Net income in the three months ended Aug. 4 rose to $935 million, or 60 cents per share, from $839 million, or 52 cents per share, in the year-ago period. Wall Street was looking for profit of 61 cents per share, according to a Thomson Financial poll of 19 analysts.
Wahhhh. So the analysts were looking for more profit. My parents taught me to be grateful for what I had. But I'm here in flyover country, what do I know.
Sales rose more than 12 percent to $13.39 billion from $11.93 billion last year, slightly ahead of the Wall Street estimate of $13.38 billion. Sales at stores open at least a year — a closely watched gauge of retailers’ health called same-store sales — rose 3.3 percent.
Hey, sales exceeded Wall Street's estimate by $10 million! Where are the ananlysts now? You can see I get somewhat irritated with "experts". But then again, I love 'business speak'. Juxtapose these two comments.
“Near-term pressures on the U.S. consumer have led to a more cautions outlook for the balance of the year,” Chief Executive Robert Niblock said in a prepared statement.
“We remain very optimistic about the long-term opportunities in these markets,” Niblock said.
So what is it? Cautious or optomistic?
That's the problem with flyover country. Too much common sense...
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