Home Depot (HD) stock is up 4% on Tuesday, after the company reported strong Q4 2024 earnings that beat expectations. The home improvement retailer posted positive comparable sales after eight straight quarters of declines, a positive sign after the lackluster 2024 as a whole. In the last 365 days, HD stock is only up 5%, in part due to high interest rates and home prices challenging the home improvement industry as a whole.
In the three-month period that ended Feb. 2, Home Depot’s net income climbed to $3.0 billion, or $3.02 per share, from $2.80 billion, or $2.82 per share, last year. Revenue rose 14% from $34.79 billion in the year-ago period.
“Our fourth quarter results exceeded our expectations as we saw greater engagement in home improvement spend, despite ongoing pressure on large remodeling projects,” said Ted Decker, Home Depot’s CEO. “Throughout the year, we remained steadfast in our investments across our strategic initiatives to position ourselves for continued success, despite uncertain macroeconomic conditions and a higher interest rate environment that impacted home improvement demand. I would like to thank our associates for all that they do to serve our customers and communities.”
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What Home Depot Projects in 2025
For the full year ahead, the company said it expects total sales to grow by 2.8% and comparable sales, which take out the impact of one-time factors like store openings and calendar differences, to increase by about 1%. Home Depot projected adjusted earnings per share will decline about 2% compared with the prior year. A more positive 2025 outlook would have perhaps sent the stock up much higher.
In the last month, Home Depot (HD) stock is down 5%, including its recent 4% climb today. Sales growth slowed in 2023, after consumers’ huge appetite for home renovations during the Covid pandemic returned to more typical patterns. Inflation and a shift back to spending on services like vacations and restaurants also lowered demand for Home Depot’s offerings and thus stock.
