Home improvement retailer Lowe’s (NYSE: LOW) will be reporting results tomorrow morning. Here’s what to expect.

Lowe's beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $20.17 billion, down 1.5% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EPS estimates but a slight miss of analysts’ EBITDA estimates.

Is Lowe's a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Lowe’s revenue to decline 1.7% year on year to $18.29 billion, improving from the 17.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.84 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lowe's has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Lowe’s peers in the home furnishing and improvement retail segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Floor And Decor delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 1.9%, and Home Depot reported revenues up 14.1%, topping estimates by 1.5%. Floor And Decor traded up 1.6% following the results.

Read our full analysis of Floor And Decor’s results here and Home Depot’s results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the home furnishing and improvement retail stocks have shown solid performance, the group has generally underpeformed, with share prices down 8% on average over the last month. Lowe's is down 12.3% during the same time and is heading into earnings with an average analyst price target of $282.36 (compared to the current share price of $238.25).

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