Home Depot Posts Q4 Beat: Disappointing Guidance Reflects No Improvement In Macro, Elevated Interest Rates

Shares of Home Depot Inc (NYSE:HD) were climbing in early trading on Wednesday, after the company reported upbeat fourth-quarter results.

The results came in amid an exciting earnings season. Here are some key analyst takeaways.

Telsey Advisory Group On Home Depot

Analyst Joseph Feldman reiterated an Outperform rating and price target of $455.

Home Depot's adjusted earnings grew by 9.5% year-on-year in the fourth quarter to $3.13 per share, exceeding consensus of $3.04 per share, Feldman said in a note. Earnings were driven by stronger-than-expected sales of $39.7 billion and better-than-expected comp of 0.8%, he added.

"The sales beat reflected broad customer engagement, with growth for both Pro and DIY, as well as across 15 of 19 regions in the US and in both Mexico and Canada in local currency," the analyst wrote. However, Home Depot's 2025 guidance for both sales and profits were disappointing, "reflecting anticipation of an unimproved macro backdrop, with the assumption of unchanged housing turnover and continued elevated interest rates," he further stated.

Check out other analyst stock ratings.

KeyBanc Capital Markets On Home Depot

Analyst Bradley Thomas reiterated a Sector Weight rating on the stock.

Home Depot's comps turned positive in the fourth quarter after two years of declines, Thomas said. While both Pro and DIY sales were positive, Pros outperformed DIY, he added.

"Big-ticket comps improved sequentially but remain pressured," the analyst wrote. Despite the fourth-quarter beat, management issued 2025 sales and earnings guidance below expectations, he further stated.

HD Price Action: Shares of Home Depot had risen by 1.23% to $398.08 at the time of publication on Wednesday.

Read More:  Home Depot Stays ‘Steadfast’ On Investments Amid Economic Uncertainty As It Expects 2% EPS Decline: JPMorgan Analyst Says ‘Guidance Appears Conservative’

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