Home Depot (NYSE:HD) Posts Earnings Results, Misses Expectations By $0.01 EPS

Key Points

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Home Depot (NYSE:HD - Get Free Report) posted its quarterly earnings results on Tuesday. The home improvement retailer reported $4.68 EPS for the quarter, missing analysts' consensus estimates of $4.69 by ($0.01), RTT News reports. Home Depot had a return on equity of 193.99% and a net margin of 8.86%.The business had revenue of $45.28 billion during the quarter, compared to analysts' expectations of $45.43 billion. During the same period in the prior year, the firm posted $4.60 earnings per share. The firm's revenue for the quarter was up 4.9% on a year-over-year basis. Home Depot updated its FY 2025 guidance to 14.940-14.940 EPS.

Home Depot Price Performance

Shares of HD traded up $15.2960 during mid-day trading on Friday, hitting $412.9960. 5,283,627 shares of the stock were exchanged, compared to its average volume of 3,454,809. The company has a market cap of $410.90 billion, a PE ratio of 28.06, a price-to-earnings-growth ratio of 3.77 and a beta of 1.00. Home Depot has a 52-week low of $326.31 and a 52-week high of $439.37. The firm has a 50-day moving average of $373.34 and a two-hundred day moving average of $371.56. The company has a debt-to-equity ratio of 4.31, a quick ratio of 0.28 and a current ratio of 1.15.

Home Depot Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Thursday, September 4th will be issued a dividend of $2.30 per share. This represents a $9.20 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Thursday, September 4th. Home Depot's dividend payout ratio is 62.50%.

Analysts Set New Price Targets

A number of research firms recently commented on HD. Jefferies Financial Group lowered their price target on Home Depot from $461.00 to $456.00 in a report on Tuesday, May 20th. Stifel Nicolaus boosted their price target on Home Depot from $425.00 to $432.00 and gave the stock a "buy" rating in a report on Monday. DA Davidson reissued a "buy" rating and issued a $450.00 price target on shares of Home Depot in a report on Tuesday. Telsey Advisory Group reissued an "outperform" rating and issued a $455.00 price target on shares of Home Depot in a report on Tuesday. Finally, Royal Bank Of Canada lowered their price target on Home Depot from $424.00 to $399.00 and set a "sector perform" rating on the stock in a report on Thursday, May 15th. One analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $432.52.

Insider Transactions at Home Depot

In other news, EVP Teresa Wynn Roseborough sold 5,406 shares of the business's stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of $369.28, for a total transaction of $1,996,327.68. Following the transaction, the executive vice president owned 17,367 shares of the company's stock, valued at approximately $6,413,285.76. The trade was a 23.74% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Edward P. Decker sold 32,897 shares of the business's stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $397.22, for a total value of $13,067,346.34. Following the transaction, the chief executive officer directly owned 122,425 shares in the company, valued at approximately $48,629,658.50. This represents a 21.18% decrease in their position. The disclosure for this sale can be found here. Insiders sold 42,672 shares of company stock valued at $16,827,675 over the last 90 days. Insiders own 0.10% of the company's stock.

Institutional Trading of Home Depot

Several institutional investors have recently added to or reduced their stakes in the company. Strategic Investment Advisors MI boosted its position in shares of Home Depot by 13.1% during the second quarter. Strategic Investment Advisors MI now owns 708 shares of the home improvement retailer's stock valued at $259,000 after buying an additional 82 shares during the period. High Falls Advisors Inc purchased a new position in Home Depot during the 2nd quarter valued at $216,000. Nikulski Financial Inc. boosted its holdings in Home Depot by 3.1% during the 2nd quarter. Nikulski Financial Inc. now owns 8,851 shares of the home improvement retailer's stock valued at $3,245,000 after acquiring an additional 267 shares during the period. MUFG Securities EMEA plc bought a new position in Home Depot in the 2nd quarter valued at $28,575,000. Finally, Howland Capital Management LLC increased its stake in Home Depot by 1.2% in the second quarter. Howland Capital Management LLC now owns 8,115 shares of the home improvement retailer's stock worth $2,975,000 after purchasing an additional 97 shares during the period. Institutional investors own 70.86% of the company's stock.

Home Depot Company Profile

The Home Depot, Inc operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows.