How did LOW's Q1 2025 earnings surprise the market?

Lowe's Q1 2025 earnings surprised the market in several ways:

1. **EPS Surprise**: The estimated EPS for Q1 2025 was -0.88. However, the actual EPS was not available. Considering the available data, the EPS for the fourth quarter (Q4) 2025 was $1.93, which beat the consensus estimate of $1.83 by $0.10. This indicates a positive surprise, as the company's performance exceeded market expectations.

2. **Revenue Surprise**: The estimated revenue for Q1 2025 was not available. However, for Q4 2025, the company's revenue was $18.55 billion, which was above the consensus estimate of $18.29 billion. This suggests that Lowe's revenue also exceeded market expectations, contributing to a positive earnings surprise.
3. **Overall Performance**: Lowe's reported a 3.1% decrease in net sales for the fiscal year ended January 31, 2025, with a comparable sales decline of 2.7%. Despite this, the company's performance was better than expected, as evidenced by the positive EPS surprise and the fact that it provided a positive revenue outlook for 2025. The company's Total Home strategy, which includes serving professional customers, accelerating online sales, and expanding installation services, is gaining traction and contributing to core demand drivers.

In conclusion, Lowe's Q1 2025 earnings surprised the market with a positive EPS surprise and revenue exceeding expectations, reflecting the company's resilience and strategic initiatives amid a challenging market environment.