Home Depot Q1 Earnings Preview: 'Well Positioned For Share Gains' — Will Consumers Doing Home Repairs Over Buying Homes Help?
Portfolio Pulse from Chris Katje
Home Depot Inc (NYSE:HD) is set to report its Q1 financial results with analysts expecting a slight year-over-year decline in revenue and earnings per share. Despite the challenging macro environment, Home Depot is anticipated to continue gaining market share, particularly among professional customers, compared to Lowe's Companies (NYSE:LOW). Analysts have generally positive ratings on HD, with price targets adjusted in light of the company's performance and market conditions. The report will also offer insights into the home improvement market, with a focus on home repairs over new home purchases and the growth in smart home products.
May 13, 2024 | 7:25 pm
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NEGATIVE IMPACT
Lowe's Companies, as Home Depot's rival, is mentioned for its comparison in market share gains and stock performance. Analysts view Home Depot as having stronger exposure to professional customers, potentially impacting Lowe's market position.
Home Depot's stronger position and focus on professional customers could negatively impact Lowe's, especially if HD continues to outperform in market share gains and stock performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Home Depot is expected to report a minor decline in Q1 revenue and EPS year-over-year but is well-positioned for market share gains, especially in the professional segment. Analysts remain optimistic, adjusting price targets while maintaining positive ratings.
Despite expected declines in revenue and EPS, Home Depot's strategic positioning and analyst optimism suggest a positive short-term impact. The company's focus on professional customers and expansion in smart home products could drive growth.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100