Home Depot Q4 Results Tops Estimates But Outlook Falls Short

Home Depot (HD) on Tuesday fourth-quarter results that topped analysts’ estimates, but the home-improvement giant’s outlook was weaker than expected.

Home Depot posted adjusted earnings per share (EPS) of $3.13 on revenue of $39.70 billion. Analysts polled by Visible Alpha had expected $3.03 and $39.12 billion, respectively.

The retailer expects total sales growth of about 2.8% in 2025, along with a 1% increase in comparable store sales. Analysts were expecting total sales growth of 3.27% and comparable sales to rise 1.88% this year.

Home Depot sees full-year adjusted EPS declining about 2% from $15.24 in 2024, while the analyst consensus was for a rise to $15.63.

Home Depot shares were down about 2% immediately following Tuesday’s report. They entered the day up roughly 3% over the last 12 months.

Comp Store Sales Return to Growth

The retailer said its Q4 comparable store sales rose by 0.8% year-over-year, while analysts had forecast a 1.48% drop. Comp sales had declined in the previous eight quarters, and analysts had expected the metric to turn slightly positive in the first quarter of 2025.

Home Depot and rival Lowe’s (LOW) had said in recent quarters that inflation and a post-pandemic slowdown in home-improvement projects had hurt sales. Lowe’s is set to report fourth-quarter results on Wednesday.