Lowe’s Companies, Inc. (LOW) is expected to report a further decline in sales following disappointing results from its rival, Home Depot (HD). Lowe’s first-quarter earnings per share (EPS) dropped 17% to $3.06, with revenue falling more than 4% to $21.36 billion. This decline in sales is the sixth consecutive quarter of same-store sales decreases for Lowe’s, dating back to Q3 2022.

Analysts forecast Lowe’s first-quarter earnings to drop 20% to $2.95 per share, with sales totaling $21.14 billion, down more than 5% compared to last year. The consensus among analysts also predicts a 5.5% decrease in same-store sales, which would be the sixth consecutive quarter of decline.

Lowe’s management guided full-year EPS of $12-$12.30 with revenue of $84-$85 billion, expecting a 2%-3% decline in same-store sales for 2024. Despite this, Lowe’s stock has gained ground, advancing 0.4% during premarket trade on Monday.

Home Depot, which reported better-than-expected first-quarter earnings, reaffirmed its 2024 guidance, predicting 1% growth in revenue and EPS, with a 1% decrease in same-store sales. This contrast highlights the challenges faced by Lowe’s in the competitive home improvement sector.

The market is cautious about Lowe’s performance, with analysts expecting further sales declines. The company’s stock has been in a consolidation phase, trading modestly below its 50-day line, and has a 45 Composite Rating out of a best-possible 99.