Group 1 - Home Depot is expected to report fiscal first-quarter earnings on May 20, 2025, with anticipated earnings of $3.59 per share and revenue of $39.16 billion, indicating a 1% decline in earnings year-over-year and an 8% increase in sales compared to the previous year [1] - The company's current market capitalization stands at $370 billion, with $160 billion in revenue, $22 billion in operating profit, and a net income of $15 billion over the last twelve months [2] - Historical data shows that Home Depot's stock has fallen 55% of the time after earnings announcements, with a median drop of 2.5% in one day and a maximum decline of 9% observed [1][2] Group 2 - Home Depot's business model is challenged by its reliance on global sourcing, particularly from China, Canada, and Mexico, which exposes it to trade interruptions and tariffs [2] - The company has recorded 20 earnings data points over the last five years, with 9 positive and 11 negative one-day returns, resulting in positive returns occurring roughly 45% of the time [5] - The median of the 9 positive returns is 1.7%, while the median of the 11 negative returns is -2.5% [5] Group 3 - For event-driven traders, historical patterns can provide an advantage, allowing for preparation ahead of earnings or response to post-release movements [2] - A less risky approach involves examining the correlation between short-term and medium-term returns after earnings, identifying pairs with the highest correlation for trading strategies [3] - The performance of peers may influence Home Depot's post-earnings reaction, with pricing potentially beginning prior to the earnings announcement [6]

Core Insights - Home Depot is expected to report quarterly earnings of $3.59 per share, reflecting a year-over-year decline of 1.1% [1] - Revenue projections stand at $39.33 billion, indicating an 8% increase from the same quarter last year [1] - The consensus EPS estimate has been revised 0.4% higher in the last 30 days, showing analysts' reevaluation of their initial estimates [1] Earnings Estimates and Market Performance - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock [2] - Empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [2] Key Metrics Projections - Analysts predict the 'Number of stores - Retail' will reach 2,350, up from 2,337 a year ago [4] - The 'Number of customer transactions - Retail' is expected to be 390.80 million, compared to 386.8 million in the same quarter last year [4] - The 'Average ticket - Retail' is projected to be $91.74, an increase from $90.68 reported in the same quarter last year [5] Stock Performance - Over the past month, Home Depot shares have recorded a return of +7.8%, compared to the Zacks S&P 500 composite's +9% change [5] - Based on its Zacks Rank 3 (Hold), Home Depot is expected to perform in line with the overall market in the upcoming period [5]

Core Viewpoint - Home Depot is expected to report first-quarter fiscal 2025 results on May 20, with anticipated revenue growth of 8% year over year, reaching $39.3 billion, while earnings per share (EPS) is projected to decline by 1.1% to $3.59 [1][2]. Financial Performance - The company has shown a positive earnings surprise trend over the last four quarters, with an average surprise of 2.6% and a 3% surprise in the last quarter [2]. - Home Depot's Earnings ESP stands at -0.32% with a Zacks Rank of 3 (Hold), indicating uncertainty regarding an earnings beat this quarter [3][4]. Market Trends - The first-quarter results are expected to reflect continued top-line recovery, driven by SRS contributions, broad-based category growth, and positive Pro sales [5]. - Comparable store sales are predicted to increase by 3.8%, with a 2.1% rise in customer transactions and a 1.4% increase in average ticket size [7]. Strategic Initiatives - Home Depot is advancing its "One Home Depot" plan, focusing on supply-chain expansion, technology investments, and digital enhancements to ensure a seamless shopping experience [6]. - The interconnected retail model and strong tech infrastructure have bolstered web traffic and supported the development of a scalable Pro ecosystem [7]. Challenges - The company faces challenges from softened demand in high-ticket discretionary categories and macroeconomic pressures, including elevated interest rates affecting consumer behavior [8][9]. - Operating income is expected to increase by only 0.7%, with a decline in operating margin by 90 basis points [10]. Stock Performance - Home Depot's shares have gained 8.8% over the past year, underperforming the S&P 500 and the Retail-Wholesale sector, which grew by 17.6% and 10.9%, respectively [11]. - The stock currently trades at a forward P/E multiple of 24.15X, above the industry average of 21.42X and the S&P 500's average of 21.59X, indicating a premium valuation [16]. Investment Outlook - Home Depot's long-term outlook remains solid due to its leadership in the home improvement sector and execution of its strategic initiatives, although near-term headwinds may limit growth potential [19][21]. - The company is well-positioned to meet evolving consumer demands, but investors may need to remain cautious in the short term due to ongoing economic pressures [21][24].

Core Viewpoint - Home Depot is set to report its earnings on May 20, 2025, with expectations of a slight decline in EPS but an increase in revenue compared to the previous year [2][3]. Group 1: Earnings and Revenue Estimates - The predicted EPS for the upcoming earnings report is $3.59, reflecting a 1.1% decline from the same quarter last year [2]. - The Zacks Consensus Estimate for revenue is projected at $39.33 billion, which represents an 8.01% increase from the year-ago period [2]. - For the entire year, the forecasted earnings are $15 per share, indicating a -1.57% change, while revenue is expected to be $163.75 billion, showing a +2.66% change compared to the previous year [3]. Group 2: Analyst Estimates and Stock Performance - Recent changes in analyst estimates for Home Depot are crucial for investors, as they reflect the latest business trends and can indicate a favorable outlook on the company's health and profitability [3][4]. - The Zacks Rank system, which incorporates estimate changes, provides actionable ratings, with 1 stocks historically delivering an average annual return of +25% since 1988 [5]. Group 3: Valuation Metrics - Home Depot is currently trading at a Forward P/E ratio of 25.1, which is higher than the industry average of 20.47, indicating a premium valuation [6]. - The company has a PEG ratio of 3.56, compared to the industry average PEG ratio of 2.43, suggesting that Home Depot's valuation is also elevated in terms of expected earnings growth [7]. Group 4: Industry Context - The Retail - Home Furnishings industry, which includes Home Depot, holds a Zacks Industry Rank of 212, placing it in the bottom 15% of over 250 industries [8].

The market expects Home Depot (HD) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended April 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on M ...

Core Viewpoint - Home Depot's stock has experienced a decline of 12.3% over the past three months, which is better than the broader industry's 14.7% drop but worse than the Retail-Wholesale sector and S&P 500 declines of 10.5% and 7.9%, respectively [1][6] Stock Performance - The current stock price of Home Depot is $362.75, representing a 17.4% discount from its 52-week high of $439.37 and a 12% premium from its 52-week low [5] - Home Depot's stock trades above its 200-day moving averages, indicating strong upward momentum and price stability [5] Growth Drivers - Home Depot has maintained consistent growth through its "One Home Depot" strategy, focusing on technology investments, supply-chain modernization, and digital transformation [8] - The company caters to both DIY customers and professional contractors, enhancing customer loyalty and market appeal [8][9] - A vast store network and a growing online presence position Home Depot well to meet evolving consumer demands [9] Operational Challenges - Home Depot faces challenges such as softened demand and pressure in high-ticket discretionary categories, affecting total and comparable sales [10] - For fiscal 2025, the company projects a 2.8% year-over-year increase in sales, a slowdown from the 4.5% growth in fiscal 2024, with comparable sales expected to rise just 1% [10] - The gross margin is forecast to remain flat at 33.4%, and the operating margin is projected at 13% [10] Profitability Pressures - Elevated interest rates are impacting consumer behavior and financing costs, with net interest expenses expected to rise to $2.2 billion in fiscal 2025 from $2.1 billion in the prior year [11] - Home Depot anticipates a 3% decline in GAAP earnings per share and a 2% year-over-year fall in adjusted EPS [12] Earnings Estimates - Home Depot's earnings estimates for fiscal 2025 have shown an uptrend, with a 0.2% increase in the Zacks Consensus Estimate for earnings per share in the last seven days [13] - The consensus estimate for fiscal 2025 sales implies 2.7% year-over-year growth, while earnings per share suggest a decline of 1.5% [13] Valuation - Home Depot's stock is currently trading at a forward 12-month P/E multiple of 23.56X, higher than the industry average of 20.55X and the S&P 500's average of 20.65X [14][15] - Competitors like Lowe's, Williams-Sonoma, and Haverty Furniture have lower forward 12-month P/E ratios, indicating that Home Depot's valuation may seem expensive [15] Investment Outlook - Despite the premium valuation and cautious outlook, Home Depot's growth initiatives and strong Pro customer sales position it well for the long term [18] - The prevailing headwinds necessitate a thorough evaluation of recent developments before making investment decisions [19]

Core Insights - Home Depot is well-positioned to continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates consistently in the last two quarters [1][4]. Earnings Performance - For the last reported quarter, Home Depot achieved earnings of $3.13 per share, exceeding the Zacks Consensus Estimate of $3.04 per share by 2.96% [2]. - In the previous quarter, the company reported earnings of $3.78 per share against an expected $3.64 per share, resulting in a surprise of 3.85% [2]. Earnings Estimates - There has been a favorable change in earnings estimates for Home Depot, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [4][7]. - The current Earnings ESP for Home Depot is +0.43%, suggesting analysts are optimistic about its near-term earnings potential [7]. Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [5]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [6]. Upcoming Earnings Report - Home Depot's next earnings report is anticipated to be released on May 20, 2025 [7].

Core Insights - Wall Street Horizon provides institutional traders and investors with accurate and comprehensive forward-looking event data [1] - The company covers 9,500 companies worldwide and offers more than 40 corporate event types [1] - The data includes earnings calendars, dividend dates, option expiration dates, splits, and investor conferences [1] - By keeping clients informed of critical market-moving events and revisions, the data helps financial professionals manage volatility [1]

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ATLANTA, May 6, 2025 /PRNewswire/ -- The Home Depot®, the world's largest home improvement retailer, announced today that it will hold its First Quarter Earnings Conference Call on Tuesday, May 20, at 9 a.m. ET. A webcast will be available by logging onto http://ir.homedepot.com/events-and-presentations and selecting the First Quarter Earnings Conference Call icon. The webcast will be archived, and the replay will be available beginning at approximately noon on May 20. The Home Depot is the world's largest ...