Lowe’s Companies Inc (NYSE:LOW) stock fell 0.47% (As on August 21, 11:28:35 AM UTC-4, Source: Google Finance) after the company delivered a solid quarterly performance and announced a major acquisition aimed at deepening its reach into the professional construction market. The home improvement giant announced it would acquire California-based Foundation Building Materials for $8.8 billion, adding a distributor that serves around 40,000 professional customers across more than 370 North American locations. During the quarter, the company invested $1.3 billion for the acquisition of ADG and paid $645 million in dividends.

LOW in the second quarter of FY25 has reported the adjusted earnings per share of $4.27, beating the analysts’ estimates for the adjusted earnings per share of $4.25. The company had reported the adjusted revenue of $24 billion in the second quarter of FY25, missing the analysts’ estimates for revenue of $23.96 billion. The comparable sales improved by 1.1%, driven by strength in both Pro and DIY segments, though this was shy of Street estimates of 1.29%.

Moreover, Monthly comps were down 1% in May up 0.3% in June. And in July, we delivered positive transactions and comps up 4.7%. For the quarter, comparable average ticket increased 2.9% and comparable transactions declined 1.8%. Adjusted gross margin was 33.8% in the quarter, up 37 basis points from last year with improvements in both shrink and credit revenue as well as continued benefits from the perpetual productivity improvement or PPI initiatives. And adjusted SG&A of 17.3% of sales deleveraged six basis points. Adjusted operating margin rate of 14.7% was up 23 basis points versus prior year and the adjusted effective tax rate of 24.1% was in line with prior year results. Inventory ended Q2 at $16.3 billion down $499 million versus prior year.

Lowe’s Companies, Inc. updates financial guidance for the full year of 2025. For the period, the company expects total sales of $84.5 to $85.5 billion (previously $83.5 to $84.5 billion). Comparable sales expected to be flat to up +1% as compared to prior year. Operating income as a percentage of sales (operating margin) of 12.1% to 12.2% (previously 12.3% to 12.4%). Diluted earnings per share of approximately $12.10 to $12.35 (previously $12.15 to $12.40). The company’s expectations for its core business performance in fiscal 2025 remains unchanged. The company is updating its outlook for the operating results of full year 2025 to reflect the inclusion of ADG.