What factors drive LOW's EPS surprises?

Lowe's (LOW) EPS surprises can be attributed to several key factors:

1. **Net Income**: The most recent net income reported for LOW was $1.13 billion for the quarter ending Q4 2025. This figure is crucial in understanding the company's profitability and can significantly impact EPS.

2. **Sales Performance**: LOW's sales for the fiscal fourth quarter were $18.55 billion, which is slightly below the previous quarter's sales of $18.6 billion. The slight decline in sales could potentially affect EPS if costs are not well-managed.
3. **Strategic Growth Initiatives**: Despite market challenges, LOW has reported robust Q4 sales and online growth. Strategic initiatives like online sales growth of 9.5% in Q4 can positively influence EPS by increasing revenue.
4. **Operating Margin**: The adjusted operating margin for the full year was 12.3%. Improvements in operating efficiency can lead to higher EPS by reducing costs and increasing profitability.
5. **Economic Conditions**: Market uncertainty and DIY spending pressures can impact LOW's performance. The company's ability to navigate these conditions and maintain sales growth is crucial for positive EPS surprises.

In conclusion, LOW's EPS surprises are primarily driven by its net income, sales performance, strategic growth initiatives, operating margin, and the economic conditions in which it operates.