Home Depot (HD) Is About to Report Its Q1 Earnings Tomorrow. Here Is What to Expect

Home Depot (HD), a home improvement retailer, is set to announce its Q1 earnings results before the opening bell on Tuesday, May 20. HD stock has gained over 12.7% over the past year, fueled by a rebound in same-store sales, strategic moves like opening 13 new stores in 2025, and an increase in its annual dividend. According to Main Street Data, Home Depot operated approximately 2,015 stores in the United States, and 322 stores in Canada and Mexico in Q4 2024.

Wall Street analysts expect the company to report earnings of $3.59 per share in Q1, down 1.1% year-over-year. However, revenues are expected to grow by 8% from the year-ago quarter to $39.34 billion, according to data from the TipRanks Forecast page. It’s important to highlight that HD has surpassed the consensus EPS estimates in all of the last nine quarters.  

Analysts’ Views on HD Ahead of Q1 Results

Ahead of HD’s Q results, Bernstein analyst Zhihan Ma kept a Market Perform rating on Home Depot with a price target of $380 per share, expecting a soft Q1 due to unfavorable weather, weak consumer sentiment, and mixed trends from peers and suppliers. While tariff risks are now “more moderate” following recent easing in trade tensions, Ma noted that elevated mortgage rates near 7% and limited consumer spending power continue to weigh on home improvement demand. Also, the analyst doesn’t expect Home Depot’s comparable sales growth to return to the 3.0%-3.5% range until FY27.

However, Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating and $455 price target on Home Depot, expecting a return to positive comparable sales growth in 2025. He noted that year-over-year comparisons are easier, following declines of 1.7% in 2024 and 3.2% in 2023.

Feldman believes consumers are likely to resume delayed home improvement projects as they get used to higher interest rates. Events like new jobs or growing families could also push demand. He added that U.S. home equity has grown by about 50% since 2019, which might lead to bigger remodeling plans. Still, he warned that the recovery could take a few quarters, with short-term challenges ahead, especially due to changing tariff rules.

Options Traders Anticipate a Minor Move

Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.

Indeed, it currently says that options traders are expecting a 4.27% move in either direction.

Is Home Depot Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on HD stock based on 20 Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. The average HD price target of $429.71 per share implies 12.85% upside potential.

See more HD analyst ratings

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