Home Depot Analysts Cut Their Forecasts Following Q2 Results

The Home Depot, Inc. HD reported mixed results for its second quarter on Tuesday.

HD reported second-quarter 2024 sales growth of 0.6% year-over-year to $43.175 billion, marginally missing the consensus estimate of $43.376 billion. Adjusted EPS was $4.67 (-0.2% year over year), beating the consensus of $4.50.

"The underlying long-term fundamentals supporting home improvement demand are strong. During the quarter, higher interest rates and greater macro-economic uncertainty pressured consumer demand more broadly, resulting in weaker spend across home improvement projects," commented Ted Decker, chair, president, and CEO.

Home Depot raised its sales guidance from $154.20 billion to $156.49 billion – $158.01 billion versus the consensus of $158.88 billion. It expects Comparable sales to decline between 3% and 4% (prior ~1%). HD expects Adjusted EPS of $14.66-$14.96 versus the consensus of $15.14.

Home Depot shares gained 1.2% to close at $350.07 on Tuesday.

These analysts made changes to their price targets on Home Depot following earnings announcement.

• Stifel analyst W. Andrew Carter maintained Home Depot with a Hold and lowered the price target from $380 to $375.
• Evercore ISI Group analyst Greg Melich maintained Home Depot with an Outperform rating, while cutting the price target from $415 to $400.

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