1. Q4 revenue beat predictions: $39.7B vs $39.2B. Revenue grew 14% YoY. 2. Comparable sales rose 0.8% globally and 1.3% in the US. 3. CEO cites higher rates reducing major renovations. Home Depot faces ongoing pressure. 4. 2025 forecasts missed expectations with 2.8% sales growth versus 3.3%. Shares fell pre-market. 5. Home Depot plans 13 new stores and targets a 33% operating margin in 2025.
The mixed signals of a revenue beat alongside conservative forward guidance create offsetting forces. Historical trends show strong current performance can be tempered by lowered future expectations, as seen in similar retail earnings reports.
While strong revenue performance highlights business resilience, the tempered guidance raises near-term uncertainty. This combination moderately impacts HD’s price outlook.
Market reaction is immediate due to the short-term revenue forecast disappointment, despite long-term operating strengths. Investors have previously reacted sharply to downgraded near-term guidance.