Home Depot braces for mixed earnings report amid economic challenges

In the United States, Home Depot is scheduled to release its fiscal first-quarter earnings on May 20, 2025. Analysts are projecting earnings of $3.59 per share based on estimated revenue of $39.16 billion. This projected revenue marks an 8% increase from the previous year, while the anticipated earnings indicate a slight decline of 1% year-over-year when compared to figures from the prior fiscal first quarter. As a point of comparison, last year's earnings were reported at $3.64 per share alongside revenue of $36.42 billion. The company has historically faced fluctuations in stock performance post-earnings announcements, with Home Depot's shares having declined 55% of the time in the past after such releases. The median drop on the day following earnings announcements has been around 2.5%, with some instances showing declines as severe as 9%. Traders often analyze these patterns to manage their investments and strategize based on these historical results. Another factor that could impact Home Depot's upcoming earnings performance is its business model, which relies heavily on outsourcing manufacturing. This strategy exposes the company to potential risks related to trade interruptions and tariffs. Key product categories such as lumber, steel, aluminum, plumbing fixtures, and various tools may be influenced by these economic challenges. Last year, Home Depot generated $160 billion in revenue, achieving an operating profit of $22 billion and a net income of $15 billion. With economic considerations at the forefront, the housing market's activity and mortgage rates will also play considerable roles in shaping investor perspectives and expectations surrounding Home Depot's earnings release.