Lowe's is likely to post another disappointing quarter as consumers remain cautious about home-related spending.

On Tuesday, Wall Street is expecting Lowe's to post a Q3 revenue of $19.93 billion, a 3% drop compared to last year. Adjusted earnings per share are projected to decrease 9.62% to $2.82.

Same-store sales are estimated to have fallen 2.7% year over year, dragged down by lower foot traffic, down 3.01%, while average ticket size is up 0.67%. This would be Lowe's eight straight quarter of same-store sales decline.

In Q3 of last year, same-store sales dropped a whopping 7.4%, driven by a 7% decline in foot traffic and a lower average check.

"Lowe's is lapping difficult comparisons from the past four years fueled by higher home values and heightened home-related spending as a result of the pandemic," Telsey Advisory Group's Joe Feldman wrote in a note to clients.

Positive catalysts in the near future include Fed rate cuts, hurricane-related recovery efforts following Hurricanes Helene and Milton, and normalizing "post-pandemic demand trends," per Feldman.

"Lower interest rates [are] expected to spur increased consumer spending in the coming months — historically, there has been about a six to nine month lag from the first rate cut, particularly in home improvement," he wrote.

TD Cowen analyst Max Rakhlenko said the company is "well positioned for the next Home Improvement Cycle" and he expects to see growth within the Pro business, specifically the small to medium-size Pro market. DIY customers make up roughly 75% of Lowe's business as of the latest quarter.

Last week, Home Depot (HD) posted results that beat estimates across all key metrics. Revenue jumped 6.6% year over year to $40.22 billion, compared to the $39.29 billion expected. Adjusted earnings per share came in at $3.78 versus estimates of $3.66. Same-store sales dropped 1.30%, less than the estimated 3.01% decline.

Bank of America analyst Robby Ohmes said Lowe's "continues to gain traction with its Total Home Strategy," which drove mid-single-digit growth in the pro category in the previous quarter.

"We expect these initiatives, which include improved service, investment in inventory depth, store remodels, Lowe's MVP Pro Rewards program, its CRM [customer relationship management] system, and online & digital tools, to support market share gains and to aid in longer-term growth in sales per square foot," he wrote to clients.

Shares of Lowe's are up 24% year to date, roughly the same as the S&P 500's gain, according to Yahoo Finance Data. Rival Home Depot is up 19% in 2024.