Home Depot Analysts Increase Their Forecasts Following Q2 Results

The Home Depot Inc. HD reported weak earnings for the second quarter on Tuesday.

The company posted second-quarter fiscal 2025 sales of $45.277 billion, up 4.9% from $43.175 billion a year earlier, but slightly below Wall Street's estimate of $45.356 billion.

Net earnings were $4.6 billion, or $4.58 per diluted share, compared with $4.6 billion, or $4.60 per share, in the prior year. Adjusted diluted earnings per share were $4.68, just above last year's $4.67 but short of the $4.71 consensus estimate.

"Our second quarter results were in line with our expectations. The momentum that began in the back half of last year continued throughout the first half as customers engaged more broadly in smaller home improvement projects," said Ted Decker, chair, president, and CEO.

Home Depot reaffirmed its fiscal 2025 outlook, guiding for approximately 2.8% sales growth and 1.0% comparable sales growth for the 52-week year. The company expects a gross margin of 33.4%, an operating margin of 13.0%, and an adjusted operating margin of 13.4%.

Home Depot shares fell 1.1% to trade at $402.85 on Wednesday.

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

Baird analyst Peter Benedict maintained Home Depot with an Outperform rating and raised the price target from $425 to $450.
DA Davidson analyst Michael Baker maintained the stock with a Buy and raised the price target from $450 to $475.

Considering buying HD stock? Here’s what analysts think: