Home Depot beats Q3 sales estimates, cuts forecast on consumer uncertainty

Overview

• Home Depot fiscal Q3 sales rise 2.8%, slightly beating analyst expectations

• Adjusted EPS for fiscal Q3 misses analyst estimates

• Company updates fiscal 2025 guidance due to ongoing consumer uncertainty and housing pressure

Outlook

• Home Depot expects fiscal 2025 total sales growth of approximately 3.0%

• Company anticipates fiscal 2025 diluted EPS to decline approximately 6.0%

• Home Depot forecasts adjusted diluted EPS to decline approximately 5.0% in fiscal 2025

Result Drivers

• GMS ACQUISITION - Recent acquisition of GMS Inc. contributed approximately $900 mln to Q3 sales

• STORM IMPACT - Lack of storms in Q3 led to greater pressure in certain categories, affecting results

• CONSUMER UNCERTAINTY - Consumer uncertainty and housing pressure impacted home improvement demand, per CEO Ted Decker

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 25 "strong buy" or "buy", 13 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the home improvement products & services retailers peer group is "buy"

• Wall Street's median 12-month price target for Home Depot Inc is $438.00, about 18.3% above its November 17 closing price of $358.03

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nCNWDSv34a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)