Home Depot shares rise as quarterly earnings clear a cautious Wall Street bar

Core Viewpoint - Home Depot's quarterly earnings exceeded cautious Wall Street expectations, indicating stability in the business despite a challenging housing market and consumer spending concerns [1]. Financial Performance - Adjusted earnings were reported at $2.72 per share, surpassing the expected $2.53 per share [2]. - Net income was $2.57 billion, or $2.58 per share, down from $3 billion a year earlier, with the previous year's figures affected by an extra trading week [2]. - Revenue reached $38.2 billion, slightly above the expected $38.09 billion, with year-on-year decline attributed to calendar differences [3]. Sales Metrics - Same-store sales increased by 0.4% overall and 0.3% in the United States, indicating modest improvement but not a significant recovery in demand [3]. - Customer transaction volumes decreased by 1.6%, while the average transaction value rose to $91.28 from $89.11 [3]. Market Conditions - The CEO highlighted sluggish storm activity and ongoing weakness in the housing market as major challenges [4]. - Existing US home sales fell by 8.4% in January, marking the slowest annualized pace in over two years, and consumer confidence reached its lowest level since 2014 [4]. Future Outlook - For fiscal 2026, Home Depot forecasts total sales growth between 2.5% and 4.5%, with adjusted earnings per share expected to remain flat to increase by 4% compared to last year's $14.69 [4].