Home Depot Set to Report Q4 Earnings: Analysts Anticipate Growth

Atlanta’s Home Depot, Inc. (HD), a leading name in home improvement retail, is gearing up to announce its fiscal Q4 earnings on Tuesday, Feb. 25. The company offers a wide range of products, including building materials and home décor, and boasts a market cap of $406.7 billion.

Analysts Predict Increase in Profit

Experts forecast that Home Depot will report a profit of $3.01 per share, reflecting a 6.7% increase from $2.82 per share during the same quarter last year. The company has exceeded Wall Street profit estimates consistently over the past year, with Q3 earnings of $3.78 per share outperforming predictions by 3.9%.

Fiscal 2024 Outlook Remains Positive

For fiscal 2024, analysts predict that HD’s earnings per share will rise slightly to $15.12 from $15.11 in fiscal 2023.

Mixed Stock Performance Over the Year

In the last 52 weeks, HD shares have climbed 15.1%, though this is below the S&P 500 Index’s 26.5% gain and the Consumer Discretionary Select Sector SPDR Fund’s 33.1% return.

Inflationary Data Impact on Stock

The core Consumer Price Index (CPI) report for December was better than expected, prompting a 3.4% increase in Home Depot’s stock. In contrast, after its Q3 earnings report on Nov. 12, shares dropped 1.3% despite strong revenues of $40.2 billion and a positive earnings report.

Challenges Amidst Revenue Growth

Following Q3, Home Depot increased its full-year 2024 sales growth forecast to 4%. Nevertheless, a 1.3% decline in comparable sales and a 9.2% rise in operating expenses raised concerns among investors, overshadowing more favorable indicators like its adjusted EPS, which fell by 1.8% year-over-year.

Analysts Remain Optimistic

Despite recent challenges, analysts hold a “Strong Buy” rating on HD, with 26 out of 36 recommending this position. This represents a slight increase in bullish sentiment from three months ago, where 25 analysts expressed a “Strong Buy” rating.

Future Price Target Suggests Modest Gains

The average price target for Home Depot stands at $435.32, indicating a potential upside of 6.3% from current levels.

On the date of publication, Neharika Jain did not hold positions in any of the securities mentioned in this article. All information in this article is for informational purposes only. Please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.