As Home Depot Inc (NYSE:HD) reports second-quarter earnings Tuesday before the market opens, investors will get a glimpse of housing demand and key trends to track.
Earnings Estimates: Analysts expect the home improvement retailer to report Q2 revenue of $45.36 billion. That’s up from $43.17 billion in last year's second quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in three straight quarters. It also beat estimates in six of the last 10 quarters overall.
Analysts expect Home Depot to report Q2 earnings per share of $4.71, up from $4.67 in last year's second quarter.
The company missed analyst estimates in the last reported quarter. However, it beat earnings per share estimates in nine of the previous 10 quarters overall.
Read Also: How To Earn $500 A Month From Home Depot Stock Ahead Of Q2 Earnings
What Analysts Are Saying: Bank of America analyst Robert Ohmes estimates Home Depot will show improvement from the first quarter on Tuesday. The optimism comes from Home Depot's growth in the professional segment.
"We expect HD to see continued share gains as it accelerates growth & capabilities w/ the complex pro," Ohmes said in a new investor note.
The analyst reiterated a Buy rating and price target of $450 ahead of earnings.
Ohmes highlighted the company's professional segment, which includes the recent acquisition of SRS Distribution. Home Depot recently announced plans to acquire GMS, which could complement the SRS business, according to the analyst.
The analyst said Home Depot is "well positioned in a choppy macro" environment.
"We expect HD to see continued share gains as it accelerates growth and capabilities with the complex pro, both organically and inorganically."
Here are other analyst ratings on Home Depot and their price targets:
- Telsey: Maintained Outperform rating with $455 price target
- Truist: Maintained Buy rating, raised price target from $417 to $433
Key Items to Watch: Data from Placer.ai shows visits to Home Depot improved in the second quarter. Data shows visits down 3.9% year-over-year in the first quarter and down 2.2% year-over-year in the second quarter.
This improvement, which includes the months of April (-1.9%), May (-1.1%) and June (-3.7%) could signal an improvement in visits and spending.
Placer.ai data highlighted strong visitor growth for Home Depot in regions like the Midwest and East Coast, which could help offset concerns around lower existing home sales.
Another area to watch will be tariffs. Benzinga notes that the company did not mention tariffs in its first-quarter earnings results, but an updated forward-looking statement mentioned the risks of tariffs.
The home improvement retailer reiterated full-year guidance of sales growth of 2.8% year-over-year and a total of $163.98 billion. The company's guidance for earnings per share is $14.94 for the full fiscal year.
Analysts and investors will closely monitor whether these numbers remain in line with the company's guidance or if weaker home sales and tariffs have led to revised forecasts.
A strong reaction to Home Depot earnings could prompt investors to keep a close eye on other stocks and ETFs. Peer company Lowe's Companies (NYSE:LOW) is set to report second-quarter results on Wednesday.
Lowe's has beaten earnings per share estimates from analysts in more than 10 straight quarters, while revenue has been split with five beats and five misses.
The SPDR Dow Jones Industrial Average (NYSE:DIA) ETF will also be on watch, with Home Depot being the fourth-largest holding at 5.5% of assets.
Price Action: The stock performance for Home Depot and Lowe's is nearly identical year-to-date. Home Depot shares traded at $395.65 on Monday, within a 52-week trading range of $326.31 to $439.37. Home Depot stock is up 1.7% year-to-date.
Lowe's shares trade at $251.36 on Monday versus a 52-week trading range of $206.39 to $287.01. Lowe's stock is up 1.9% year-to-date in 2025.
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