Lowe's Cos Inc reported a 27 percent rise in quarterly profit, boosted by rising lumber prices and demand for appliances, and said it expected sales to rise 1 percent to 3 percent in the current quarter.

The No. 2 U.S. home improvement chain said its fourth-quarter profit rose to $205 million, or 14 cents a share, up from $162 million, or 11 cents a share, a year earlier.

Analysts on average expected Lowe's to earn 12 cents a share, according to Thomson Reuters I/B/E/S.

Sales rose about 2 percent to $10.17 billion, beating the average estimate of about $10.01 billion.

(Reporting by Dhanya Skariachan; Editing by Derek Caney)