Lowe's net income rises 26% to $499 million but trails estimates Lowe's Cos. posted third-quarter profit that trailed analysts' estimates as it works to match Home Depot Inc.'s growth in an improving housing market. Lowe's stock fell. Earnings were 47 cents a share, Lowe's said Wednesday. Analysts had estimated 48 cents on average. Net income in the quarter advanced 26% to $499 million. Chief Executive Robert Niblock has trimmed slow-selling products from Lowe's inventory and negotiated lower prices with vendors to catch up to larger Home Depot, which Tuesday posted profit and sales that topped analysts' projections. Lowe's said sales at stores open at least a year climbed 6.2% in the quarter, trailing the 7.4% gain that Home Depot reported. "Home Depot is better positioned to benefit from the ongoing improvements in housing," said Alan Rifkin, an analyst at Barclays in New York. Lowe's "slightly disadvantaged real estate portfolio coupled with its less robust merchandising capabilities has the potential to drive future underperformance." Lowe's third-quarter revenue rose 7.3% to $13 billion. The average of estimates compiled by Bloomberg was for $12.7 billion. Annual profit will be $2.15 a share, up from a forecast in August of $2.10, the Mooresville, N.C., company said. Analysts had predicted $2.19 on average. Sales will rise about 6%, up from a prior prediction of 5%, Lowe's said. Lowe's shares fell $3.11, or 6.2%, to $47.33 after the release of earnings. Home Depot shares slipped 63 cents, or 0.8%, to $79.75. Lowe's stock has gained 33% this year, while Home Depot has added 29%. Lowe's and Home Depot have benefited from improvement in the U.S. housing market that has given homeowners confidence to renovate kitchens and bathrooms. Lowe's operates 1,831 home improvement and hardware stores in the United States, Canada and Mexico.