Lowe’s Companies Inc. (NYSE:LOW) is up nearly 10% today, hitting highs of $109.80 a share, after expectation-beating second quarter results. This positive price action has come after Lowe’s reported a strong Q2 to 2018. In addition to a financially strong Q2, Lowe’s also released its plans to all 99 Orchard Supply Hardware stores nationwide.
LOW had a solid gap-up this morning in reaction to the earnings reports, opening about $5 higher than the previous day. LOW is currently up 7.45% at $107.17 a share, during lunch-time on Wednesday. The Moving Average Convergence Divergence (MACD) has also crossed over on the 1 day chart, which normally has bullish sentiment. Additionally, the Stochastic RSI is following in a similar direction along with the Commodity Channel Index.
In the second quarter at Lowe’s, sales were up 7.1% ($20.9 billion) and comparable sales were up 5.2%. Quarter 2 diluted earnings per share is at $1.86 which is up from $1.68 from the second quarter of last year. Or, when adjusted for the non-cash pre-tax charges of $230 million incurred in Q2, diluted EPS is $2.07 up from $1.57 year-over-year.
Lowes’ plan to close all Orchard Supply Hardware locations nationwide was said to be in an effort to focus all their attention to their Lowe’s hardware stores. CEO of Lowe’s, Marvin R. Ellison, also plans to “rationalize store inventory” across the Lowe’s hardware stores by “reducing lower-performing inventory while investing in increased depth of high velocity items.”
Last but not least, Lowe’s has also named a new chief financial officer, David Denton. Denton is currently the CEO at CVS (NYSE:CVS) and is set to join the team at Lowe’s after the closing of CVS acquisition of Aetna (NYSE:AET).