The current quarter includes charges that lowered earnings by 5 cents per share. In the prior-year period, charges reduced earnings by 18 cents per share.
The adjusted earnings of 40 cents per share beat the 36 cents per share that analysts polled by FactSet predicted.
Revenue rose 2 percent to $12.07 billion from $11.85 billion. That also beat Wall Street's estimate of $11.93 billion.
Transactions below $50 were up about 1.3 percent, and transactions above $500 were up about 2.5 percent. Strong categories included lumber and cabinets and countertops.
Revenue at stores open at least a year, a key gauge of a retailer's health, increased 1.8 percent. At its U.S. stores, the metric climbed by the same percentage rate. This figure excludes results from stores recently opened or closed.
For fiscal 2012, Lowe's still expected earnings of about $1.64 per share and revenue to be approximately the same as 2011's $50.21 billion. Analysts forecast earnings of $1.66 per share on revenue of $50.1 billion.
Shares of Lowe's gained $1.98, or 6.2 percent, to close at $33.96 Monday after rising as high as $34.50 earlier in the session. That is its highest level since February 2007, according to FactSet.
S&P analyst Michael Souers kept his "Sell" rating on the stock, saying it remains overvalued.
"We see Hurricane Sandy providing a modest boost to results near-term, but remain cautious on consumer spending," he wrote in a client note.
Lowe's Cos., which is based in Mooresville, N.C., has 1,750 stores in the U.S., Canada and Mexico.
Associated Press Writer Michelle Chapman contributed to this report
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