Home Depot Inc (HD: NSD) is set to report its Q1 earnings tomorrow, May 14, before the start of trading. Analysts are cautiously optimistic about the home improvement giant’s performance, but tempering expectations for a slight decline compared to last year.
Analyst Ratings and Expectations:
Below are the Wallstreet expectation for the Q1 earnings of Home Dept
- Earnings per share (EPS) are expected to be around $3.60, down 5.8% year-over-year.
- Revenue is projected to come in at $36.6 billion, reflecting a 1.6% decrease from the first quarter of 2023.
Despite the anticipated decline, analyst sentiment on Home Depot stock remains positive. Here’s a glimpse into what some analysts are expecting:
- Seth Basham, Wedbush: Maintains a “Buy” rating on HD with a price target of $410, indicating a potential upside of 18.4%.
- Steven Zaccone, Citi: Expects Home Depot’s results to be in line with or slightly above analyst estimates. However, he anticipates continued weakness in the pet retail and electronics categories.
Stock Target Advisor’s Evaluation:
Stock Target Advisor’s gives ‘Hold’ ratings to Home Depot with a Target Price of $386, factoring in a Projected Price Change over the next 12 months of 11.42% favorable increase. Compiled market data reveals an average analyst target price for Home Depot Inc. at $376.95 within the next year, advocated by a prevailing analyst rating of ‘Strong Buy’. However, giving equal weight to positive and negative signals, our unique perspective on Home Depot Inc. paints a more neutral picture.
Final Thoughts:
The upcoming earnings report will be crucial for investors to gauge Home Depot’s ability to navigate the changing consumer spending landscape and its plans for future growth.
