Home improvement retail giant Home Depot (NYSE: HD) will be reporting results tomorrow before market hours. Here’s what you need to know.

Home Depot beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $40.22 billion, up 6.6% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ EPS estimates but a slight miss of analysts’ gross margin estimates.

Is Home Depot a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Home Depot’s revenue to grow 12.5% year on year to $39.12 billion, a reversal from the 2.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.04 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Home Depot has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Home Depot’s peers in the home furnishing and improvement retail segment, only Floor And Decor has reported results so far. It beat analysts’ revenue estimates by 1.9%, delivering year-on-year sales growth of 5.7%. The stock traded up 1.6% on the results.

Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the home furnishing and improvement retail stocks have shown solid performance, the group has generally underperformed, with share prices down 7.7% on average over the last month. Home Depot is down 8.7% during the same time and is heading into earnings with an average analyst price target of $433.62 (compared to the current share price of $387.65).

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