Lowe's Stock Rises On Q4 Earnings Beat: Retail Sentiment Brightens

Shares of Lowe's Companies Inc. (LOW) rose nearly 2% on Wednesday after the home improvement giant posted better-than-expected fourth-quarter earnings driven by strong holiday performance and post-Hurricane rebuilding efforts, lifting retail sentiment.

Earnings per share (EPS) came in at $1.93, beating the estimated $1.84 expected by analysts, according to Stocktwits data.

Its total sales for Q4 were $18.6 billion, beating estimates of $18.3 billion.

Comparable sales for the quarter increased 0.2%, driven by high-single-digit professional and online comparable sales, strong holiday performance, and rebuilding efforts in the wake of recent hurricanes, the company said.

"Our results this quarter were once again better-than-expected, as we continue to gain traction with our Total Home strategic initiatives," said Marvin Ellison, Lowe's chairman, president and CEO. "We remain confident in the long-term strength of the home improvement industry, and we are equally confident in our strategy to capitalize on the expected recovery. We are also pleased to award $80 million in discretionary bonuses to our frontline associates in recognition of their hard work and dedication to delivering excellent customer service."

For 2025, the company expects total sales between $83.5 billion and $84.5 billion. That compares to consensus estimates of $84.77 billion. Comparable sales are expected to be flat to an increase of up to 1% as compared to prior year.

It expects diluted earnings per share of about $12.15 to $12.40 for 2025. That compares to the consensus estimate of $12.48.

Sentiment on Stocktwits improved to ‘extremely bullish’ compared to ‘extremely bearish’ a week ago. Message volume jumped to ‘ extremely high’ territory.

One bullish comment on Stocktwits was predicting price target hikes.

Following the results, Truist lowered the price target to $295 from $308 with a ‘Buy’ rating, The Fly reported. According to the research firm, while the company’s professional business again posted high single digits comparable sales, the DIY big-ticket discretionary remains pressured.

Lowe's operates over 1,700 home improvement stores and employs more than 300,000 people.

Lowe's stock is up 0.11% year-to-date.

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