What To Expect From Home Depot's (HD) Q1 Earnings

Home improvement retail giant Home Depot (NYSE:HD) will be announcing earnings results tomorrow before the bell. Here's what investors should know.

Home Depot met analysts' revenue expectations last quarter, reporting revenues of $34.79 billion, down 2.9% year on year. It was a decent quarter for the company, with a narrow beat of analysts' revenue and earnings 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 decline 1.5% year on year to $36.69 billion, improving from the 4.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.61 per share.

The majority of analysts covering the company have 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 twice over the last two years.

Looking at Home Depot's peers in the home furnishing and improvement retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Floor And Decor's revenues decreased 2.2% year on year, missing analysts' expectations by 1.5%, and Arhaus reported a revenue decline of 3.1%, topping estimates by 11.7%. Floor And Decor's stock price was unchanged after the resultswhile Arhaus was up 23.8%.

Read our full analysis of Floor And Decor's results here and Arhaus's results here.

There has been positive sentiment among investors in the home furnishing and improvement retail segment, with share prices up 6.5% on average over the last month. Home Depot is up 2.5% during the same time and is heading into earnings with an average analyst price target of $382.8 (compared to the current share price of $346.27).

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