Home Depot Posts First Earnings Growth In 2 Years: Shares Up Despite Disappointing Guidance

Core Viewpoint - Home Depot Inc reported strong fourth-quarter results, leading to a rise in its stock price, with analysts providing positive outlooks despite conservative guidance for future growth [1][2]. Financial Performance - Home Depot's fourth-quarter adjusted earnings were $3.13 per share, exceeding the consensus estimate of$3.01 per share [2]. - The company's net sales increased by 14.1% year-on-year to $39.7 billion, surpassing the consensus of$39.2 billion [2]. - Comparable sales grew by 0.8%, which was better than the expected contraction of 1.5% [4]. Growth Metrics - There was an acceleration in both average ticket size and transactions during the quarter, marking the first positive transaction growth since Q1 2021 [3]. - Management provided guidance for 2025, projecting sales growth of approximately 2.8%, which is below the consensus of 3.3% [3]. Analyst Ratings - Goldman Sachs analyst Kate McShane maintained a Buy rating with a price target of $410 [2]. - JPMorgan analyst Christopher Horvers kept an Overweight rating, noting the first year-on-year earnings growth since Q4 2022 [4]. Future Guidance - Home Depot expects a 1.0$14.93 [5].