Home Depot HD is set to give its latest quarterly earnings report on Tuesday, 2025-05-20. Here’s what investors need to know before the announcement.
Analysts estimate that Home Depot will report an earnings per share (EPS) of $3.60.
Anticipation surrounds Home Depot’s announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Past Earnings Performance
In the previous earnings release, the company beat EPS by $0.13, leading to a 0.71% drop in the share price the following trading session.
Here’s a look at Home Depot’s past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 3 | 3.64 | 4.50 | 3.60 |
| EPS Actual | 3.13 | 3.78 | 4.67 | 3.63 |
| Price Change % | -1.0% | 2.0% | 2.0% | 2.0% |
Tracking Home Depot’s Stock Performance
Shares of Home Depot were trading at $380.78 as of May 16. Over the last 52-week period, shares are up 12.09%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Views on Home Depot
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Home Depot.
The consensus rating for Home Depot is Outperform, derived from 16 analyst ratings. An average one-year price target of $428.31 implies a potential 12.48% upside.
Understanding Analyst Ratings Among Peers
The analysis below examines the analyst ratings and average 1-year price targets of Floor & Decor Hldgs, Betterware de Mexico SAPI and GrowGeneration, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Floor & Decor Hldgs, with an average 1-year price target of $90.76, suggesting a potential 76.16% downside.
- Analysts currently favor an Buy trajectory for Betterware de Mexico SAPI, with an average 1-year price target of $22.5, suggesting a potential 94.09% downside.
- Analysts currently favor an Buy trajectory for GrowGeneration, with an average 1-year price target of $2.5, suggesting a potential 99.34% downside.
Overview of Peer Analysis
The peer analysis summary outlines pivotal metrics for Floor & Decor Hldgs, Betterware de Mexico SAPI and GrowGeneration, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Home Depot | Outperform | 14.14% | $13.03B | 48.24% |
| Floor & Decor Hldgs | Neutral | 5.78% | $508.17M | 2.23% |
| Betterware de Mexico SAPI | Buy | -2.87% | $2.32B | 13.66% |
| GrowGeneration | Buy | -25.44% | $9.71M | -8.11% |
Key Takeaway:
Home Depot ranks highest in Revenue Growth and Gross Profit among its peers. It also has the highest Return on Equity. However, it ranks lower in Consensus rating compared to its peers.
All You Need to Know About Home Depot
Home Depot is the world’s largest home improvement specialty retailer, operating more than 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the US, Canada, and Mexico. Its stores offer building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of Interline Brands in 2015 allowed Home Depot to enter the MRO business, which has been expanded through the tie-up with HD Supply (2020). The additions of the Company Store brought textiles to the lineup, and the 2024 tie-up with SRS will help grow professional demand in roofing, pool and landscaping projects.
A Deep Dive into Home Depot’s Financials
Market Capitalization Analysis: The company’s market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Revenue Growth: Home Depot’s remarkable performance in 3 months is evident. As of 31 January, 2025, the company achieved an impressive revenue growth rate of 14.14%. This signifies a substantial increase in the company’s top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: Home Depot’s net margin is impressive, surpassing industry averages. With a net margin of 7.55%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Home Depot’s financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 48.24%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Home Depot’s ROA surpasses industry standards, highlighting the company’s exceptional financial performance. With an impressive 3.1% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Home Depot’s debt-to-equity ratio stands notably higher than the industry average, reaching 9.38. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
To track all earnings releases for Home Depot visit their earnings calendar on our site.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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