Shares of The Residence Depot (NYSE: HD) dipped over 1% on Monday. The inventory has dropped 5% prior to now three months. The house enchancment retailer is scheduled to report its earnings outcomes on Tuesday, November 18, earlier than market open. Right here’s a have a look at what to anticipate from the earnings report:
Income
Analysts are projecting income of $41 billion for Residence Depot within the third quarter of 2025, which suggests a development of practically 2% from the identical interval a yr in the past. Within the second quarter of 2025, HD’s gross sales elevated 4.9% year-over-year to $45.3 billion.
Earnings
The consensus estimate for earnings per share in Q3 2025 is $3.85, which compares to adjusted EPS of $3.78 reported within the year-ago quarter. In Q2 2025, adjusted EPS rose barely YoY to $4.68.
Factors to notice
Residence Depot is more likely to have benefited from continued demand for smaller residence enchancment tasks within the third quarter. The softness in bigger discretionary tasks might have continued within the to-be-reported quarter.
HD has been seeing constructive efficiency throughout each the Professional and DIY buyer segments. The corporate has been specializing in strengthening its place within the Professional section. It has been investing considerably in increasing its choices and bettering its achievement choices for Professional clients in addition to enhancing capabilities in commerce credit score and order administration. These efforts are anticipated to proceed yielding advantages.
The corporate’s efforts in bettering its digital capabilities are paying off, as witnessed in a 12% development in on-line gross sales final quarter. As well as, quicker supply and an improved purchasing expertise are serving to drive buyer engagement and gross sales.
Residence Depot is benefiting from its strategic acquisitions within the Professional area. SRS is performing properly and the corporate has now accomplished the acquisition of GMS, which can broaden its choices in specialty constructing merchandise for Professional clients in addition to broaden its distribution footprint throughout the US and Canada. The mixture of SRS and GMS is predicted to drive cross-selling synergies and generate extra development alternatives within the Professional section.
