Previous Earnings Reports Hurt Home Depot Stock—Will This One?

Group 1 - Home Depot is expected to announce its fiscal second-quarter earnings on August 19, 2025, with analysts predicting earnings of $4.70 per share and revenue of $45.37 billion, reflecting a 2% increase in earnings and a 5% rise in sales year-over-year [3] - The company has a current market capitalization of $400 billion, with revenue over the past twelve months at $163 billion, operating profits of $22 billion, and net income of $15 billion [3] - Historical data indicates that Home Depot stock has dropped 55% of the time after earnings announcements, with a median one-day decline of 2.2% and a maximum observed decrease of 9% [3] Group 2 - In the past five years, there have been 20 earnings data points for Home Depot, with 9 positive and 11 negative one-day returns, resulting in positive returns approximately 45% of the time [5] - The percentage of positive one-day returns increases to 58% when considering data from the last three years [5] - The median of the 9 positive returns is 1.7%, while the median of the 11 negative returns is -2.2% [5] Group 3 - The company is focused on maintaining prices despite tariff pressures, leveraging its scale, supplier relationships, and diversified supply chain to absorb costs and potentially capture market share as competitors raise prices [3] - In Q1, Home Depot experienced strong demand for smaller projects and seasonal activities, although high interest rates have deterred consumers from larger renovation projects [3]