Wall Street is optimistic that Lowe's (LOW) will slowly build momentum to kickstart 2025. 

The home improvement retailer is expected to post relatively soft fourth quarter and fiscal 2024 results on Wednesday before the market opens. 

Similar to Home Depot (HD), analysts expect the company to benefit from incremental sales following hurricanes and wildfires. A solid holiday season with stronger appliance sales, higher lumber prices, and "possibly better demand for bigger ticket projects" may also be tailwinds, Wedbush analyst Seth Basham wrote in a note.

However, Lowe's faces a shift to services instead of home improvements and signs that consumer spending remains pressured by high interest rates. The company is also "lapping difficult comparisons from the past four years," Joe Feldman of Telsey Advisory Group wrote. 

Wall Street expects revenue for the fourth quarter to come in lower than last year at $18.3 billion. Adjusted earnings are expected to grow to $1.84 per share, more than Lowe's earnings of $1.77 last year.

Same-store sales are expected to decline 1.91% for the quarter due to a decline in foot traffic (expected to drop 2.05%) but offset by a slight increase in average ticket size (up 0.40%). 

Here's what Lowe's is expected to post for its third quarter earnings compared to the year prior, per Bloomberg consensus estimates: 

• Revenue: $18.3 billion, versus $18.6 billion

• Adjusted earnings per share: $1.84, versus $1.77

• Same-store sales growth: -1.91%, versus -6.20%

Here's what Lowe's is expected to post for its full-year results compared to the year prior, per Bloomberg consensus estimates:

• Revenue: $83.42 billion, versus $86.38 billion

• Adjusted earnings per share: $11.94, versus $13.09

• Same-store sales growth: -3.16%, versus -4.7%

Sean Rayford via Getty Images

Some analysts think Lowe's could have a leg up over Home Depot in 2025 when do-it-yourself (DIY) customers return to the market.

"With more exposure to bigger ticket discretionary products and the DIY segment, Lowe's has more torque in its business once the cycle turns," Wedbush's Basham said. "We expect to see that unfold as the year progresses."

On Tuesday, Home Depot posted fourth quarter results that slightly topped Wall Street's low expectations. Pro categories such as roofing, drywall, and lumber boosted same-store sales growth by 0.8% for the Lowe's competitor, which logged its first positive quarter in nearly two years.

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Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.

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