Home Depot's (NYSE:HD) Q1 Fiscal 2025 Financial Performance Analysis

- Earnings Per Share (EPS): Home Depot reported an EPS of $3.56, slightly below the estimated $3.60.

- Revenue Growth: The company achieved a revenue of approximately $39.86 billion, surpassing the estimated $39.30 billion.

- Market Position and Financial Metrics: Despite a slight decline in comparable store sales, Home Depot's strong market position is reflected in its revenue growth and financial ratios such as the P/E ratio of 25.39 and a debt-to-equity ratio of 9.38.

Home Depot (NYSE:HD), the world's largest home improvement retailer, recently reported its financial results for the first quarter of fiscal 2025. The company, known for its wide range of home improvement products, competes with other major retailers like Lowe's. On May 20, 2025, Home Depot announced earnings per share (EPS) of $3.56, slightly below the estimated $3.60. Despite this, the company achieved a revenue of approximately $39.86 billion, surpassing the estimated $39.30 billion.

The reported EPS of $3.56 fell short of the Zacks Consensus Estimate of $3.59, marking a negative surprise of 0.84%. This is a decrease from the $3.63 per share reported in the same quarter last year. However, in the previous quarter, Home Depot exceeded expectations with earnings of $3.13 per share against an anticipated $3.04, resulting in a positive surprise of 2.96%.

Over the past four quarters, Home Depot has surpassed consensus EPS estimates three times, demonstrating its ability to perform well despite occasional setbacks. In terms of revenue, Home Depot reported $39.86 billion for the quarter ending April 2025, exceeding the Zacks Consensus Estimate by 1.15%. This represents a significant increase from the $36.42 billion in revenue reported in the same quarter the previous year.

The company has consistently outperformed consensus revenue estimates in the last four quarters, highlighting its strong market position and effective business strategies. Despite a slight decline of 0.3% in comparable store sales, which was marginally worse than the projected 0.24% drop, sales at U.S. locations increased by 0.2%, contrary to expectations of a minor decrease.

CEO Ted Decker expressed satisfaction with the results, emphasizing continued customer engagement in smaller projects and spring events. The CFO also indicated that Home Depot plans to "generally maintain" its current price levels, suggesting stability in its pricing strategy. Home Depot's financial metrics provide further insight into its market position.

The company has a price-to-earnings (P/E) ratio of approximately 25.39, indicating the market's valuation of its earnings. The price-to-sales ratio stands at about 2.36, reflecting its market value relative to revenue. Additionally, the enterprise value to sales ratio is around 2.74, and the enterprise value to operating cash flow ratio is approximately 22.10. The debt-to-equity ratio is notably high at 9.38, indicating a significant level of debt compared to equity. Lastly, the current ratio is approximately 1.11, suggesting the company's ability to cover its short-term liabilities with its short-term assets.