Home Depot shares advanced 0.7% in midday trading after the retailer reported second-quarter results that exceeded analyst forecasts, with adjusted earnings per share of $4.92 versus expectations near $4.73.
Revenue totaled $47.86 billion, topping the consensus estimate of approximately $47.27 billion. Comparable store sales rose 1.7% companywide, marking the strongest quarterly growth since late 2022. U.S. comps increased 1.3%, while online sales climbed 11%, extending a streak of five consecutive quarters of double-digit digital growth.
Management reaffirmed its full-year guidance, projecting comparable sales of roughly flat to up 2% and adjusted earnings per share of about flat to up 4%. Chief Financial Officer Richard McPhail characterized current market conditions as a "frozen housing market" during the earnings call.
Analysts adjusted price targets following the report. Stifel raised its target to $340 from $320, maintaining a Hold rating. Bernstein trimmed its target to $344 from $346.
The company’s performance contrasts with broader macro pressures. July housing starts fell 12.4% month-over-month to an annualized 1.239 million units, the weakest single-family construction reading since late 2022. Meanwhile, the S&P 500 declined 0.5%, the Nasdaq slid 1.1%, and the Dow dipped 0.2%. Treasury yields near multi-decade highs and Brent crude oil above $90 per barrel added to market headwinds.
