Uncovering Potential: Home Depot's Earnings Preview
Home Depot (NYSE:HD) is preparing to release its quarterly earnings on Tuesday, 2025-11-18. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Home Depot to report an earnings per share (EPS) of $3.83.
Home Depot bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Earnings Track Record
During the last quarter, the company reported an EPS missed by $0.02, leading to a 1.34% drop in the share price on the subsequent day.
Here's a look at Home Depot's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 4.70 | 3.59 | 3.00 | 3.64 |
| EPS Actual | 4.68 | 3.56 | 3.13 | 3.78 |
| Price Change % | -1.00 | -2.00 | -1.00 | 2.00 |
Performance of Home Depot Shares
Shares of Home Depot were trading at $362.36 as of November 14. Over the last 52-week period, shares are down 10.92%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.
Analyst Insights on Home Depot
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Home Depot.
A total of 15 analyst ratings have been received for Home Depot, with the consensus rating being Outperform. The average one-year price target stands at $442.67, suggesting a potential 22.16% upside.
Analyzing Analyst Ratings Among Peers
In this analysis, we delve into the analyst ratings and average 1-year price targets of Floor & Decor Hldgs and Betterware de Mexico SAPI, three key industry players, offering 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 $78.14, suggesting a potential 78.44% 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 93.79% downside.
Analysis Summary for Peers
The peer analysis summary outlines pivotal metrics for Floor & Decor Hldgs and Betterware de Mexico SAPI, 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 | 4.87% | $15.12B | 48.88% |
| Floor & Decor Hldgs | Neutral | 5.51% | $511.96M | 2.46% |
| Betterware de Mexico SAPI | Buy | 1.41% | $2.31B | 25.42% |
Key Takeaway:
Home Depot ranks highest in gross profit and return on equity among its peers. It is in the middle for revenue growth.
Unveiling the Story Behind Home Depot
Home Depot is the world's largest home improvement specialty retailer, operating 2,353 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 2024 tie-up with SRS will help grow professional demand in roofing, pool, and landscaping projects, while the pending acquisition of GMS will lift building product sales.
Understanding the Numbers: Home Depot's Finances
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
Revenue Growth: Over the 3 months period, Home Depot showcased positive performance, achieving a revenue growth rate of 4.87% as of 31 July, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.
Net Margin: Home Depot's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 10.05% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 48.88%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Home Depot's ROA stands out, surpassing industry averages. With an impressive ROA of 4.57%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 5.75, caution is advised due to increased financial risk.
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.