Erste Group Bank Lowers Earnings Estimates for Home Depot

Key Points

• Erste Group slightly cut its FY2028 EPS forecast for Home Depot to $16.26 from $16.32, while the consensus estimate for the current full year sits at $15.03.
• Home Depot beat the last quarter's EPS estimate with $2.72 versus a $2.52 consensus and raised its quarterly dividend to $2.33 (annualized $9.32, ~2.9% yield).
• The stock is trading lower (down ~1.9%, around $323) despite varied analyst moves and holds an average rating of Moderate Buy with a consensus target price of $414.17.

The Home Depot, Inc. (NYSE:HD - Free Report) - Analysts at Erste Group Bank dropped their FY2028 earnings per share (EPS) estimates for Home Depot in a research note issued to investors on Monday, April 27th. Erste Group Bank analyst S. Lingnau now expects that the home improvement retailer will earn $16.26 per share for the year, down from their prior forecast of $16.32. The consensus estimate for Home Depot's current full-year earnings is $15.03 per share.

Several other equities analysts have also recently weighed in on HD. KeyCorp restated a "sector weight" rating on shares of Home Depot in a report on Wednesday, February 25th. Evercore reduced their price objective on Home Depot from $425.00 to $415.00 and set an "outperform" rating on the stock in a research note on Tuesday, March 31st. Gordon Haskett lifted their price objective on Home Depot from $330.00 to $370.00 and gave the stock a "hold" rating in a research note on Wednesday, February 11th. Guggenheim lifted their price objective on Home Depot from $400.00 to $425.00 and gave the stock a "buy" rating in a research note on Wednesday, February 25th. Finally, Robert W. Baird lifted their price objective on Home Depot from $400.00 to $430.00 and gave the stock an "outperform" rating in a research note on Tuesday, February 17th. Twenty investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $414.17.

Home Depot Stock Down 1.9%

Shares of HD opened at $322.81 on Thursday. The business's 50 day moving average is $344.25 and its 200 day moving average is $359.57. The company has a market capitalization of $321.53 billion, a PE ratio of 22.69, a price-to-earnings-growth ratio of 3.63 and a beta of 1.09. Home Depot has a 12-month low of $315.31 and a 12-month high of $426.75. The company has a current ratio of 1.06, a quick ratio of 0.26 and a debt-to-equity ratio of 3.62.

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

Home Depot Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Thursday, March 12th were issued a dividend of $2.33 per share. This represents a $9.32 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date was Thursday, March 12th. This is an increase from Home Depot's previous quarterly dividend of $2.30. Home Depot's dividend payout ratio (DPR) is presently 65.50%.

Insider Transactions at Home Depot

In related news, CFO Richard V. Mcphail sold 2,550 shares of the business's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $368.89, for a total transaction of $940,669.50. Following the completion of the transaction, the chief financial officer owned 44,566 shares in the company, valued at $16,439,951.74. The trade was a 5.41% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.08% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Home Depot

Large investors have recently bought and sold shares of the business. Silphium Asset Management Ltd raised its position in shares of Home Depot by 77.2% in the 3rd quarter. Silphium Asset Management Ltd now owns 13,544 shares of the home improvement retailer's stock worth $5,488,000 after acquiring an additional 5,900 shares in the last quarter. Truist Financial Corp increased its position in Home Depot by 0.3% during the 3rd quarter. Truist Financial Corp now owns 1,095,113 shares of the home improvement retailer's stock valued at $443,729,000 after buying an additional 3,608 shares in the last quarter. Asset Management One Co. Ltd. increased its position in Home Depot by 2.3% during the 3rd quarter. Asset Management One Co. Ltd. now owns 534,564 shares of the home improvement retailer's stock valued at $216,600,000 after buying an additional 12,239 shares in the last quarter. Atlantic Union Bankshares Corp increased its position in Home Depot by 59.9% during the 3rd quarter. Atlantic Union Bankshares Corp now owns 107,438 shares of the home improvement retailer's stock valued at $43,533,000 after buying an additional 40,232 shares in the last quarter. Finally, Savvy Advisors Inc. increased its position in Home Depot by 36.0% during the 4th quarter. Savvy Advisors Inc. now owns 19,478 shares of the home improvement retailer's stock valued at $6,703,000 after buying an additional 5,152 shares in the last quarter. Hedge funds and other institutional investors own 70.86% of the company's stock.

Home Depot Company Profile

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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