Core Insights - Home Depot exceeded third-quarter sales expectations due to strong demand from professional builders and contractors, which compensated for a decline in do-it-yourself projects [1] Company Performance - The company reported robust sales driven by professional segments, indicating a shift in consumer behavior towards professional services [1] Market Trends - There is a noticeable slowdown in do-it-yourself projects, suggesting a potential shift in market dynamics and consumer preferences [1]

Core Insights - The Home Depot reported third-quarter sales of $41.4 billion for fiscal 2025, marking a 2.8% increase from the same period in fiscal 2024, with approximately $900 million attributed to the acquisition of GMS Inc. [1][2] - Net earnings for the quarter were $3.6 billion, or $3.62 per diluted share, a slight decrease from $3.67 per diluted share in the previous year [2][12]. - The company updated its fiscal 2025 guidance due to pressures from a lack of storm activity and ongoing consumer uncertainty affecting home improvement demand [3][8]. Financial Performance - Total sales for the third quarter increased by $1.1 billion, with comparable sales rising by 0.2% [1][12]. - Adjusted diluted earnings per share were $3.74, down from $3.78 in the same quarter of fiscal 2024 [2][20]. - Operating income for the quarter was $5.35 billion, reflecting a 1.2% decrease compared to the previous year [12][18]. Market Conditions - The CEO noted that the results fell short of expectations primarily due to the absence of storms, which typically drive demand in certain categories [3][8]. - Consumer uncertainty and pressures in the housing market are believed to be disproportionately impacting home improvement demand [3][8]. Store Operations - As of the end of the third quarter, The Home Depot operated 2,356 retail stores and over 1,200 SRS locations across various regions [5][12]. - The company employs over 470,000 associates [5]. Future Guidance - The company anticipates total sales growth of approximately 3.0% for fiscal 2025, with GMS expected to contribute around $2.0 billion in incremental sales [8][21]. - The guidance includes expectations for approximately 12 new store openings and a gross margin of about 33.2% [8][21].

Core Viewpoint - Home Depot is set to release its third-quarter earnings results, with analysts expecting an increase in earnings per share and revenue compared to the previous year [1][2] Earnings Expectations - Analysts predict Home Depot will report earnings of $3.83 per share, up from $3.67 per share in the same quarter last year [1] - The consensus estimate for quarterly revenue is $41.12 billion, compared to $40.22 billion a year earlier [1] Recent Performance - Home Depot has beaten revenue estimates in six of the last ten quarters but missed estimates in the most recent second quarter [2] - The company's shares fell by 1.2%, closing at $358.03 on Monday [2] Analyst Ratings - Telsey Advisory Group maintains an Outperform rating with a price target of $455 [4] - Wells Fargo has an Overweight rating, reducing the price target from $450 to $435 [4] - JP Morgan maintains an Overweight rating, lowering the price target from $452 to $444 [4] - Truist Securities holds a Buy rating, cutting the price target from $454 to $421 [4] - Morgan Stanley maintains an Overweight rating, increasing the price target from $415 to $430 [4]

Core Viewpoint - Home Depot is set to release its third-quarter earnings results, with analysts expecting an increase in earnings per share and revenue compared to the previous year [1][2]. Earnings Expectations - Analysts anticipate Home Depot will report earnings of $3.83 per share, up from $3.67 per share in the same quarter last year [1]. - The consensus estimate for quarterly revenue is $41.12 billion, compared to $40.22 billion a year earlier [1]. Recent Performance - Home Depot has exceeded revenue analyst estimates in six of the last ten quarters but missed estimates in the most recent second quarter [2]. - The company's shares fell by 1.2%, closing at $358.03 on Monday [2]. Analyst Ratings and Price Targets - Telsey Advisory Group maintains an Outperform rating with a price target of $455 [4]. - Wells Fargo has an Overweight rating, reducing the price target from $450 to $435 [4]. - JP Morgan holds an Overweight rating, lowering the price target from $452 to $444 [4]. - Truist Securities maintains a Buy rating, cutting the price target from $454 to $421 [4]. - Morgan Stanley has an Overweight rating, increasing the price target from $415 to $430 [4].

Earnings Reports - Home Depot Inc. is expected to report quarterly earnings of $3.85 per share on revenue of $41.14 billion [2] - Helmerich and Payne Inc. reported a loss of 1 cent per share for the fourth quarter, with quarterly sales of $1.012 billion, exceeding the analyst consensus estimate of $973.678 million [2] - Medtronic PLC is anticipated to post quarterly earnings of $1.31 per share on revenue of $8.87 billion [2] - Aecom is expected to report quarterly earnings of $1.34 per share on revenue of $4.31 billion [2] Stock Movements - Home Depot shares fell 0.4% to $356.70 in after-hours trading [2] - Helmerich and Payne shares dipped 8.2% to $25.34 in after-hours trading [2] - Medtronic shares rose 0.1% to $96.29 in after-hours trading [2] - Aecom shares gained 0.8% to $132.99 in after-hours trading [2] Mergers and Acquisitions - Akzo Nobel N.V. and Axalta Coating Systems Ltd. agreed to an all-stock merger of equals, resulting in Axalta Coating shares jumping 13.2% to $31.90 in after-hours trading [2]

Group 1 - Stubborn inflation and skyrocketing home prices are creating uncertainty in the residential property market, impacting consumer discretionary spending [1] - The challenges in the residential property market are affecting the sales of household durable goods and home improvement products and services [1] Group 2 - The analyst has been involved in stock investing and macroeconomic analysis for nearly a decade, focusing on ASEAN and NYSE/NASDAQ stocks, particularly in banks, telecommunications, logistics, and hotels [1] - The analyst has diversified investments across different industries and market cap sizes, including holdings in US banks, hotels, shipping, and logistics companies [1]

Stubborn inflation and skyrocketing home prices are causing uncertainty in the residential property market. These factors also make it challenging for consumers to sustain their discretionary spending. With that, household durable and home improvement products and servicesI have been working in the logistics sector for almost two decades. I have been into stock investing and macroeconomic analysis for almost a decade. Currently, I focus on ASEAN and NYSE/NASDAQ Stocks, particularly in banks, telco, logistic ...

Home Depot and Lowe's are set to post modest sales gains when they report quarterly results this week, giving investors a read on whether the outlook is improving or consumer caution is still holding ... ...

We're back on Morning Trade Live. We'll get a closer look at the home improvement trade tomorrow morning when Home Depot reports its earnings. And it's been a rough go for those stocks this year.Home Depot and Lowe's both down more than 5% in 2025, while Floor and Decor and Builder First Source are both down more than 25% year to date. So, let's go inside out on Home Depot ahead of tomorrow's earnings. Joining us now is Sky Canaves, who's the principal analyst at Earketer.Thanks so much, Sky, for joining us ...

Group 1 - The Home Depot, Inc. (NYSE:HD) is one of the largest home improvement retailers in America and is frequently discussed by Jim Cramer [2] - Cramer believes that shares of Home Depot could appreciate following a Federal Reserve interest rate cut, despite a recent downgrade by Stifel from Buy to Hold [2] - Cramer criticized the timing of the Stifel downgrade, suggesting that investors should not exit their positions in Home Depot, especially with potential Fed easing on the horizon [2] Group 2 - While Home Depot is acknowledged as a potential investment, there is a belief that certain AI stocks may offer higher returns with limited downside risk [3] - A report is available that highlights an extremely cheap AI stock that benefits from Trump tariffs and onshoring [3]