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Home Depot Q4 Results Tops Estimates But Outlook Falls Short

1. Home Depot beat Q4 EPS ($3.13 vs $3.03) and revenue targets. Analysts’ estimates were surpassed. 2. Guidance for 2025 sales and comparable store sales fell short. Expectations dropped below analyst forecasts. 3. Full-year adjusted EPS is projected to decline 2% from $15.24. This contrasts with consensus on a rise. 4. Q4 comparable store sales rose 0.8%, reversing an eight‐quarter decline. This increment comes amid inflation concerns. 5. Shares fell 2% immediately post-report, despite a 3% 12-month gain. Market reaction reflects investor caution.

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FAQ

Why Bearish?

Although Q4 EPS and revenue exceeded estimates, the downgraded guidance and lower sales growth expectations adversely impacted sentiment. Historically, similar mixed earnings reports have led to short-term price declines, as seen in past retail earnings announcements.

How important is it?

The report directly affects HD’s near-term outlook, reflected by stock drop and revised EPS forecasts. While Q4 surprises offer temporary relief, weaker forward guidance raises concerns among investors.

Why Short Term?

The immediate 2% drop in shares following the report indicates a short-term impact. Guidance revisions typically affect near-term pricing until trends are confirmed over multiple quarters.

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