09:06 AM EST, 02/26/2025 (MT Newswires) -- Lowe's (LOW) reported better-than-expected fiscal fourth-quarter results on Wednesday, but the home-improvement retailer provided a full-year earnings outlook below Wall Street's estimates amid market uncertainty.

The company posted sales of $18.55 billion for the quarter ended Jan. 31, down from $18.6 billion the year before, but ahead of the FactSet-polled consensus of nearly $18.3 billion. Comparable sales edged up 0.2%, defying the Street's expectation for a 1.8% decline, buoyed by high-single-digit online sales and a strong performance in the key holiday period, among other factors, partially offset by persistent short-term pressure in do-it-yourself discretionary spending.

Net earnings advanced to $1.99 a share from $1.77 in the prior-year quarter, topping the average analyst estimate of $1.87. The result included a $0.06 per-share gain due to the 2022 sale of the company's Canadian retail business. Excluding this gain, EPS came in at $1.93, ahead of the Street's view for $1.84. The stock gained 2.2% in premarket activity.

"Our results this quarter were once again better-than-expected, as we continue to gain traction with our total home strategic initiatives," Chief Executive Marvin Ellison said in a statement. "We remain confident in the long-term strength of the home improvement industry, and we are equally confident in our strategy to capitalize on the expected recovery."

For fiscal 2025, the retailer anticipates earnings to be in a range of about $12.15 to $12.40 on sales of $83.5 billion to $84.5 billion. The market is currently forecasting GAAP EPS of $12.48 and sales of $84.56 billion. In the previous fiscal year, EPS dropped to $12.23 from $13.20 on an annual basis, while sales fell to $83.67 billion from $86.38 billion.

Comparable sales are pegged to be flat to up 1% for the ongoing fiscal year, while the Street is looking for an increase of 1.1%. The retailer said its full-year guidance reflects continued near-term uncertainty in the home improvement market.

The company's outlook appears to be "appropriately conservative" and suggests an inflection to positive comparable sales territory, Truist Securities said in a client note. "This business has continued to demonstrate strong earnings leverage when comps are moving in the right direction and we continue to believe that when we get some settling in the economic environment, homeowners will likely start to reaccelerate home-related investments," the brokerage said.

Gross margin as a percentage of sales came in at 32.9% in the fourth quarter, compared with 32.4% in the prior-year period. Selling, general and administrative expenses fell to $3.82 billion from $3.9 billion last year.