Companies /Consumer Cyclical

Home Depot Inc

NYSE: HD Home Improvement Retail
$282.81
▼ $1.68 (−0.59%) today
Markets open · 1:53pm ET

Q4 2024 Earnings

Reported Feb 25, 2025, 6:49am ET · SEC source
$3.13
Beat +2.83%
EPS · est. $3.04 Adjusted

Excludes $145 million in acquired intangible asset amortization (primarily from the SRS Distribution acquisition), net of tax effects adding $0.11 per diluted share. The 14th week added approximately $0.30 to adjusted diluted EPS.

$39.7B
Beat +1.63%
Revenue · est. $39.1B
−3.2%
Trailing market
HD vs S&P since report
3 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+3%+6%Feb 25Feb 26report 6:49am ETearnings−0.1%+5.5%
0+3%+6%Feb 25Feb 26earnings−0.1%+5.5%
HD +5.5%S&P 500 −0.1%
0+3%+6%Feb 25Feb 26report 6:49am ETearnings−0.4%+5.5%
0+3%+6%Feb 25Feb 26earnings−0.4%+5.5%
HD +5.5%NASDAQ −0.4%
−4%0+4%+8%Feb 24Mar 5report 6:49am ETearnings−2.8%+2.9%
−4%0+4%+8%Feb 24Mar 5earnings−2.8%+2.9%
HD +2.9%S&P 500 −2.8%
−4%0+4%+8%Feb 24Mar 5report 6:49am ETearnings−3.7%+2.9%
−4%0+4%+8%Feb 24Mar 5earnings−3.7%+2.9%
HD +2.9%NASDAQ −3.7%
+2.84%
Day of report
−0.71%
Next session
−2.95%
One week
−7.77%
30 days

S&P 500 over the same 30 days: −4.57%.

Did HD Beat Earnings? Q4 2024 Results

Home Depot closed out fiscal 2024 on a strong note, posting fourth-quarter revenue of $39.70 billion, up 14.1% year over year and ahead of the $39.07 billion Wall Street had expected, while adjusted diluted EPS of $3.13 beat the $3.04 consensus by 2.83%. The headline driver was the quarter's extra week, a 14-week period versus the prior year's 13-week Q4, which contributed roughly $2.50 billion in sales and approximately $0.30 to adjusted EPS; strip that out and comparable sales still rose 0.8%, signaling a modest firming in underlying home improvement demand. The results also reflect the full-quarter contribution of SRS Distribution, acquired in June 2024, though that deal's amortization costs pressured margins, with adjusted operating margin slipping to 11.7% from 12.1% a year ago. The board rewarded shareholders with a 2.2% dividend increase to $2.30 per quarter, yet the forward picture remains cautious, with fiscal 2025 guidance calling for comparable sales growth of roughly 1.0% and adjusted diluted EPS expected to decline approximately 2% from $15.24, as elevated interest rates continue to weigh on big-ticket remodeling activity across the sector.

Key Takeaways
  • Greater engagement in home improvement spend drove comparable sales increase of 0.8% (1.3% in the U.S.)
  • 14th week added approximately $2.5 billion in sales for the quarter
  • SRS Distribution acquisition contributed to revenue growth
  • Customer transactions increased 7.6% to 400.4 million in Q4
  • Average ticket increased 0.3% to $89.11

“Our fourth quarter results exceeded our expectations as we saw greater engagement in home improvement spend, despite ongoing pressure on large remodeling projects.”

Home Depot CEO, on the earnings call

Forward Guidance & Outlook

For fiscal 2025 (52-week year vs. 53-week fiscal 2024), The Home Depot guides for total sales growth of approximately 2.8%, comparable sales growth of approximately 1.0%, approximately 13 new stores, gross margin of approximately 33.4%, operating margin of approximately 13.0% (adjusted operating margin of approximately 13.4%, excluding ~40 bps impact from acquired intangible asset amortization), tax rate of approximately 24.5%, net interest expense of approximately $2.2 billion, diluted EPS to decline approximately 3% from $14.91, adjusted diluted EPS to decline approximately 2% from $15.24 (excluding expected after-tax impact of approximately $0.40 from acquired intangible asset amortization), and capital expenditures of approximately 2.5% of total sales.

HD YoY Financials

Q4 2024 vs Q4 2023 · SEC filings Q4 2023 Q4 2024
$0$20.0B$40.0B$34.8B$39.7BRevenue$11.5B$13.0BGross Profit$4.1B$4.5BOperating Income$2.8B$3.0BNet Income
$0$20.0B$40.0BRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.