Erste Group Bank Lifts Earnings Estimates for Home Depot

Key Points

• Erste Group Bank marginally raised its FY2028 EPS estimate for Home Depot to $16.32 (from $16.30), which sits above the street consensus of $15.13 per share.
• Home Depot beat the latest quarterly estimates with $2.72 EPS (vs. $2.52 est.) and $38.20B revenue (vs. $38.01B est.), though revenue fell 3.8% year-over-year; management set FY2026 guidance of $14.230–$14.799 EPS.
• Shares are trading near $318 (down ~2.6%), while analysts hold a consensus "Moderate Buy" with an average target of $414.17, and the company raised its quarterly dividend to $2.33 (annualized $9.32, ~2.9% yield).

The Home Depot, Inc. (NYSE:HD - Free Report) - Erste Group Bank upped their FY2028 earnings per share estimates for shares of Home Depot in a research note issued to investors on Thursday, April 2nd. Erste Group Bank analyst S. Lingnau now expects that the home improvement retailer will earn $16.32 per share for the year, up from their prior estimate of $16.30. The consensus estimate for Home Depot's current full-year earnings is $15.13 per share.

Home Depot (NYSE:HD - Get Free Report) last issued its quarterly earnings data on Tuesday, February 24th. The home improvement retailer reported $2.72 EPS for the quarter, beating the consensus estimate of $2.52 by $0.20. The company had revenue of $38.20 billion for the quarter, compared to analyst estimates of $38.01 billion. Home Depot had a return on equity of 134.32% and a net margin of 8.60%.Home Depot's quarterly revenue was down 3.8% compared to the same quarter last year. During the same period last year, the company earned $3.13 earnings per share. Home Depot has set its FY 2026 guidance at 14.230-14.799 EPS.

Several other equities research analysts have also commented on HD. BNP Paribas Exane cut their price target on shares of Home Depot from $391.00 to $348.00 and set a "neutral" rating for the company in a report on Tuesday, March 24th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Home Depot in a report on Friday, March 27th. Wells Fargo & Company lifted their target price on shares of Home Depot from $395.00 to $420.00 and gave the company an "overweight" rating in a research report on Wednesday, February 25th. The Goldman Sachs Group cut their target price on shares of Home Depot from $413.00 to $409.00 in a research note on Wednesday, February 25th. Finally, Truist Financial set a $424.00 price target on shares of Home Depot in a research note on Tuesday, February 24th. Twenty analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $414.17.

Home Depot Trading Down 2.6%

Shares of NYSE:HD opened at $318.09 on Wednesday. The business's 50 day moving average price is $358.60 and its 200-day moving average price is $365.95. Home Depot has a 1 year low of $315.31 and a 1 year high of $426.75. The firm has a market capitalization of $316.82 billion, a price-to-earnings ratio of 22.35, a price-to-earnings-growth ratio of 3.51 and a beta of 1.09. The company has a debt-to-equity ratio of 3.62, a current ratio of 1.06 and a quick ratio of 0.26.

Institutional Trading of Home Depot

A number of hedge funds have recently bought and sold shares of the business. Advocate Investing Services LLC acquired a new stake in shares of Home Depot in the 4th quarter worth $25,000. Parvin Asset Management LLC boosted its position in shares of Home Depot by 110.0% during the 3rd quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer's stock valued at $26,000 after acquiring an additional 33 shares during the last quarter. Key Capital Management INC purchased a new stake in shares of Home Depot in the fourth quarter valued at about $28,000. Sagard Holdings Management Inc. acquired a new stake in Home Depot during the second quarter worth about $29,000. Finally, Abound Financial LLC acquired a new stake in Home Depot during the fourth quarter worth about $29,000. Institutional investors and hedge funds own 70.86% of the company's stock.

Insider Activity at Home Depot

In other news, CFO Richard V. Mcphail sold 2,550 shares of the firm's stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $368.89, for a total value of $940,669.50. Following the transaction, the chief financial officer directly owned 44,566 shares of the company's stock, valued at approximately $16,439,951.74. This trade represents a 5.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. 0.10% of the stock is owned by company insiders.

Home Depot Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, March 26th. Stockholders of record on Thursday, March 12th were given a $2.33 dividend. This represents a $9.32 dividend on an annualized basis and a dividend yield of 2.9%. This is a positive change from Home Depot's previous quarterly dividend of $2.30. The ex-dividend date was Thursday, March 12th. Home Depot's dividend payout ratio (DPR) is currently 65.50%.

About Home Depot

The Home Depot, Inc NYSE: HD is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.

Home Depot's core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.

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