Home Depot Edges Out Lowe's in Earnings Momentum

The post-pandemic era has presented significant challenges for Home Depot and Lowe's, two major players in the home improvement industry. Both companies have navigated slow housing turnover, affordability pressures, and cautious spending on large remodeling projects.

Home Depot's latest earnings release showed sales increased 4.8% to $41.8 billion, while adjusted EPS declined 3.7% to $3.43. The company's comparable sales rose 0.6% year-over-year, with a 2.2% increase in the comparable average ticket helping offset a 1.3% decline in transactions.

Lowe's results were more mixed, with sales rising 10.3% to $23.1 billion due in part to acquisitions. Adjusted EPS increased 3.8% year-over-year to $3.03, but comparable sales and the average ticket price rose only 0.6% and 1.5%, respectively.

Revisions for Lowe's have been more negative than Home Depot's, with EPS and sales revisions down 2.1% and 0.6%, respectively, in recent months. This difference in momentum is a key consideration for investors, particularly given the challenging operating environment facing both companies.