Can Lowe's Beat Market Expectations This Earnings Season?

Core Viewpoint - Lowe's Companies, Inc. is set to report its fourth-quarter fiscal 2024 earnings on February 26, with investors keenly anticipating whether the company can exceed market expectations [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for the upcoming quarter's revenues is $18,286 million, reflecting a 1.7$1.83 per share, indicating a 3.4% rise from the same quarter last year [2] Historical Performance - Lowe's has a trailing four-quarter earnings surprise average of 3.9%, with the last reported quarter outperforming the Zacks Consensus Estimate by 2.5% [3] Key Factors Impacting Earnings - A significant concern for Lowe's is the decline in the Do-It-Yourself (DIY) home improvement segment, as consumers are prioritizing essential expenditures over home improvement projects [4] - Comparable sales fell by 1.1% in the third quarter of fiscal 2024, with expectations of a 2.1% year-over-year decrease in comparable sales for the fourth quarter [5] Strategic Initiatives - Despite challenges, Lowe's is adapting to changing consumer behaviors, with the Pro segment serving as a key growth driver [6] - The company is implementing a multi-year strategy to enhance product offerings, fulfillment options, and the overall shopping experience for professional customers [6] Earnings Prediction Model - The Zacks model indicates a likelihood of an earnings beat for Lowe's, supported by a positive Earnings ESP and a Zacks Rank of 3 (Hold) [7][8]