Lowe’s (LOW) reported fourth quarter results that beat Wall Street’s expectations across the board including revenue, earnings and same-store sales growth.
Adjusted earnings came in $1.98, four cents higher then the Street predicted for the fourth quarter, per Bloomberg consensus data. Whereas, revenue grew 10% to $20.58 billion, slightly above the expectations of $20.35 billion.
Same-store sales grew 1.3%, more than the roughly 0.5% increase Wall Street estimated for, boosted higher by growth in its Pro business, home services sales and a “strong holiday performance.”
However, the home improvement company’s stock fell more than 3% during premarket hours, after sales guidance for the full year fell short of expectations, a sign the housing market will remain lackluster in the near term due to high borrowing costs.
“While the housing macro remains pressured, we are focused on directing what is within our control, which includes our ongoing productivity initiatives. We remain confident that we are well-positioned to take share regardless of the macro environment,” CEO Marvin Ellison said in the release.
For 2026, the company expects same-store sales growth to be flat, to up 2% compared to last year. The Street was looking for up 2%. Wall Street’s prediction for full year revenue was $93.2. billion, which fell in the middle of the range Lowe’s said of $92.0 to $94.0 billion.
Adjusted earnings though fell short of the $13.00 forecast. Lowe’s said it expected earnings to come in between the range of approximately $12.25 to $12.75.
TD Cowen analyst Max Rakhlenko wrote in a note to clients, “Ultimately, we think the early reaction with shares down low-single digits makes sense with the results and guide in-line to slightly below” expectations.