Home Depot Q1 Profit Misses Market, But Sales Beat; Backs Outlook; Stock Up

(RTTNews) - Home Depot Inc. reported Tuesday weak first-quarter profit below market estimates, while sales grew from last year and beat the Street view with slightly higher comparable sales in the U.S. Further, the home improvement retailer maintained its fiscal 2025 guidance, expecting weak earnings, but higher sales and comparable sales.

In the pre-market activity on the NYSE, Home Depot shares were gaining around 3.5 percent to trade at $392.50.

Ted Decker, chair, president and CEO, said, "Our first quarter results were in line with our expectations as we saw continued customer engagement across smaller projects and in our spring events. We feel great about our store readiness and product assortment as spring continues to break across the country..."

For fiscal 2025, a 52-week year, the company continues to project earnings per share to decline around 3 percent from $14.91 in fiscal 2024, a 53-week year. Adjusted earnings per share are still expected to drop around 2 percent from $15.24 last year. Operating margin would be around 13 percent, and adjusted operating margin would be around 13.4 percent.

Further, the company expects total sales growth of approximately 2.8 percent from last year's $159.5 billion, and comparable sales growth of approximately 1.0 percent, compared to a drop of 1.8 percent a year earlier.

The Wall Street analysts on average expect the company to earn $15 per share on sales of $164.02 billion. Analysts' estimates typically exclude special items.

In its first quarter, Home Depot's earnings decreased from the same period last year and missed the Street estimates.

The company's net earnings totaled $3.43 billion or $3.45 per share, compared with net earnings of $3.60 billion or $3.63 per share last year.

Adjusted earnings were $3.56 per share for the period, compared with $3.67 per share a year ago.

Analysts had expected the company to earn $3.59 per share.

The company's net sales for the period rose 9.4 percent to $39.856 billion from $36.418 billion last year. The Street expected sales of $39.25 billion for the first quarter.

Comparable sales for the first quarter decreased 0.3 percent, while comparable sales in the U.S. increased 0.2 percent.

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