MW Home Depot's long run of earnings beats has ended, but here's why the stock is rising

By Steve Gelsi and James Rogers

Home Depot beat Wall Street's first-quarter revenue and domestic same-store-sales expectations and maintained its full-year guidance

Home Depot Inc. ended its five-year run of earnings beats Tuesday, but its shares rose in premarket trading as the home-improvement retailer beat Wall Street's first-quarter revenue expectations and maintained its full-year guidance.

The stock $(HD)$ climbed 2.4% in premarket trades.

Home Depot said its first-quarter profit fell to $3.4 billion, or $3.45 a share, from $3.6 billion, or $3.63 a share, in the year-ago period. Adjusted profit of $3.56 a share came in below the FactSet consensus estimate of $3.60 a share, ending a run of 19 straight consensus-earnings-forecast beats. The company last missed a consensus earning estimate on May 19, 2020.

However, Home Depot's total revenue beat expectations, with a 9.4% rise to $39.9 billion, ahead of the analyst forecast of $39.3 billion.

Same-store sales fell 0.3% against the analyst estimate for a drop of 0.1%, although U.S. same-store sales increased 0.2% to beat the forecast flat reading.

The Atlanta-based company also reaffirmed its full-year guidance and said it expects sales growth of approximately 2.8% and an adjusted earnings decline of approximately 2% from $15.24 in fiscal 2024. The company expects comparable-store-sales growth of approximately 1% for the comparable 52-week period.

Home Depot's results come at a time when retailers are wrestling with the fallout from President Donald Trump's sweeping raft of tariffs. Last week retail giant Walmart Inc. $(WMT)$ said that U.S. tariffs on imported goods will push retail prices higher, prompting an angry reaction from Trump. Other retail companies have pulled their guidance this earnings season, citing the uncertain economic outlook.

In a note released early Tuesday, Mizuho Securities analyst David Bellinger highlighted the "slightly positive" U.S. same-store-sales increase and wrote that "trends improved through Q1."

In a statement, Home Depot Chief Executive Ted Decker said that the company's results were in line with its expectations and cited customer engagement across smaller projects and the company's spring events.

Home Depot's shares are down 2.5% in 2025 through Monday, compared with the benchmark S&P 500 index's SPX gain of 1.4%.

Steve Goldstein contributed.

-Steve Gelsi -James Rogers

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May 20, 2025 07:33 ET (11:33 GMT)

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