Lowe's Companies Inc. (NYSE: LOW) saw its shares surge 5.20% in pre-market trading on Wednesday following the release of its third-quarter earnings report, which exceeded analyst expectations. The home improvement retailer reported adjusted earnings per share of $3.06, surpassing the consensus estimate of $2.97 and marking a 5.88% increase from the same period last year.

The company's quarterly sales reached $20.813 billion, slightly missing the analyst forecast of $20.823 billion but still representing a 3.19% year-over-year increase. Notably, Lowe's reported a 0.4% growth in comparable sales, with online sales showing a robust 11.4% increase. The retailer also highlighted continued growth in Pro sales and home services.

In light of these results, Lowe's updated its full-year 2025 outlook, projecting adjusted diluted EPS of approximately $12.25. This guidance comes close to the FactSet consensus estimate of $12.28. The company also anticipates full-year sales of $86 billion and plans capital expenditures of up to $2.5 billion. This positive outlook, combined with the earnings beat, appears to be driving investor optimism and contributing to the stock's pre-market rally.

The strong performance of Lowe's stands in contrast to its rival Home Depot, which saw its shares tumble 6% on Tuesday following disappointing third-quarter results and a reduced full-year outlook. This disparity suggests that Lowe's may be gaining ground in the competitive home improvement retail sector, further fueling investor enthusiasm.