Lowe’s Companies, Inc. (NYSE:LOW) early Wednesday [Mar 1, 2017 | 6:35am] posted better than expected fourth-quarter earnings results and offered a bullish outlook for 2017, sending its shares nearly 6% higher in premarket trading.

Written by StockNews.com

The Mooresville, NC-based home improvement retailer reported adjusted Q4 earnings per share (EPS) of $0.86, which was $0.08 better than the Wall Street consensus estimate of $0.78.

Revenues jumped 19.3% from last year to $15.78 billion, also topping analysts’ view for $15.39 billion.

On another bullish note, Lowe’s said that comparable sales (“comps”) increased 5.1% in the latest period. Comps are considered a key indicator of a retailer’s health, since they only measure the year-over-year sales performance of stores open at least 12 months.

LOW’s 2017 outlook also topped expectations. Looking ahead, the company forecast full-year EPS of $4.64, ahead of Wall Street’s current view of $4.52. 2017 revenues are seen rising 5% to about $68.27 billion, while analysts are looking for $67.64 billion for the year.

Additionally, Lowe’s forecast comparable sales to gain 3.5% this year. It also plans to open 35 new home improvement and hardware stores in fiscal 2017. Finally, operating margins are seen expanding 120 basis points from 2016 levels.

The company commented via press release:

“We’ve entered 2017 well-positioned to capitalize on a favorable macroeconomic backdrop for home improvement by continuing to execute on our strategies to expand customer reach and develop capabilities to anticipate and support their needs. We remain committed to making productivity a core strength and investing in future capabilities that will add the most value for customers. We have the vision, the drive, the plan, and the leadership team to deliver long-term value for customer and shareholders.”

Lowe’s Companies, Inc. shares rose $4.13 (+5.55%) in premarket trading Wednesday. Year-to-date, LOW had gained 5.08% prior to today’s report, versus a 5.79% rise in the benchmark S&P 500 index during the same period.

LOW currently has a StockNews.com POWR Rating of B (Buy), and is ranked #18 of 62 stocks in the Home Improvement & Goods category.