Home Depot Q4 Unlikely to Be 'Significant Catalyst,' RBC Says

MT Newswires Live02-20 03:59

Home Depot's (HD) fiscal Q4 is not likely to be a "significant catalyst" quarter, with estimates largely unchanged, RBC Capital Markets said.

The firm said Wednesday in a note that it models Q4 comparable sales declining 0.2%, versus a consensus decline of 0.3%. It expects adjusted earnings per share of $2.56, down 18% year over year and slightly above the $2.53 consensus estimate. Management previously attributed weakness to a lack of hurricane activity and soft category demand.

For Q1, the brokerage said it is lowering its comparable sales growth estimate to 1.5% from 2.0% and adjusted EPS estimate to $3.66 from $3.71, reflecting little to no improvement in housing.

RBC also lowered its 2026 comparable sales growth estimate to 2.2% from 2.5% and adjusted EPS estimate to $15.13 from $15.25. The company previously provided preliminary 2026 guidance for comp sales growth of flat to 2% and adjusted EPS growth of flat to 4%, according to the note.

Home Depot is expected to report Q4 results on Tuesday.

RBC has a sector perform rating on Home Depot and lowered the price target to $363 from $366.

Shares of Home Depot were down 1.3% in recent Thursday trading.

Price: 378.54, Change: -4.98, Percent Change: -1.30

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