Lowe's falls behind on earnings in Q1

Even with a double-digit sales increase in the first quarter, Lowe's Companies still managed to disappoint analysts with quarterly profit and comparable sales that missed their estimates.

Sales were up 10.7% to $16.9 billion, up from $15.2 billion in 2016.

Comparable sales were up 1.9%, below the 2.6% increase expected by analysts polled by Consensus Metrix.

Net earnings for the quarter ended May 5 came in at $602 million, down from $884 million in the year-ago period. This included a $464 million pre-tax loss on extinguishment of debt in connection with the company's previously announced $1.6 billion cash tender offer.

"A solid macroeconomic backdrop, combined with our project expertise, drove above average performance in indoor projects," said chairman, president and CEO Robert Niblock. "We also continued to advance our sales to Pro customers, delivering another quarter of comparable sales growth well above the company average."

"Our employees are the foundation of our business and I would like to thank them for their hard work and commitment to anticipating and serving customer needs," Niblock added.

Lowe's reaffirmed its outlook for 2017, though diluted earnings per share were updated to reflect the loss on extinguishment of debt.

The outlook includes a total sales increase of approximately 5%, comparable store sales increase of 3.5%, and diluted earnings per share of approximately $4.30.

As of May 5, Lowe's operated 2,137 home improvement and hardware stores in the United States, Canada and Mexico, representing 213.8 million square feet of retail selling space.