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Home Depot (NYSE:HD) is set to post first quarter results on Tuesday, and investors will keep an eye on the home-retailer’s sales to get an idea of the consumer health.
Wall Street expects the Atlanta-based company to post EPS of $3.59 on revenue of $39.25 billion during the quarter, implying a rise of 8%year-over-year.
Companies such as Home Depot and Lowe’s (LOW) are looking for increased activities from customers as they come out of their winter home improvement spending pause. Both firms are offering a range of deals and exclusive products to attract homeowners and to specifically drive in-store traffic.
However, rising costs and sluggish demand amid an economic tariff uncertainty is working against the companies. Home Depot CFO Richard McPhail, in February, also warned that he doesn’t see the housing market improving in 2025.
Evercore expects Home Depot to reiterate their -2% EPS decline guidance in 2025.
Investors would expect to hear commentary on the recovery of the housing market and the ongoing tariff chaos, even though the company is better insulated from tariff costs than many retailers.
“Despite our increasing enthusiasm for the home improvement category’s prospects and the potential for both to capitalize on tariff disruption/inflation, we believe a wait-and-see approach remains appropriate,” Stifel said.
Over the last one year, Home Depot has beaten EPS estimates 100% of the time and has beaten revenue estimates 75% of the time.
Seeking Alpha analysts rated the company a Sell. However, Wall Street is bullish and rated it a Buy, while Seeking Alpha’s Quant ratings consider it a Hold.
Over the last three months, EPS estimates have seen three upward revisions, compared to 16 downward revisions, while revenue estimates have been revised upwards 11 times versus six downward moves.
The stock lost nearly 4% so far this year, compared to the over 1% rise in the broader S&P500 Index.