Home Depot shares advance as sales of the first quarter exceed consensus

• The Home Depot address says it strives to keep stable prices in front of tariffs.
• Sales in comparable US stores increased 0.2% compared to the expectation of -0.2%.
• HD shares rise about 2% after the results of the first quarter.
• Lowe’s actions also win before their own gain post on Wednesday.

The Home Depot (HD)one of the two main hardware stores in the United States, reported results of the first quarter in Tuesday that impressed a worried market. Comparable sales, although they fell globally, were better than analysts had projected. The management also maintained an optimistic attitude towards the new tariff policies of the Trump administration, saying that it would not need to increase prices.

The futures of the industrial average Dow Jones (DJIA) are slightly upward in the premarket, while the futures of the Nasdaq 100 and of the S&P 500 are moderately down.

The Home Depot Profit News

The Home Depot reported a benefit per action (BPA) adjusted of 3.56 dollars, or 3 cents below the Wall Street consensus. As expected, the adjusted BPA dropped from the figure of last year of 3.67 dollars.

The revenues of 39.86 billion dollars, however, were 610 million dollars above consensus and increased 9.5% compared to the previous year.

At the global level, comparable sales were -0.3% year -on -year, worse than the fall of -0.2% expected, but comparable sales in the US were much better. The latter were in a positive 0.2% year -on -year compared to the consensus of -0.2%.

Aiming to change suppliers to counteract tariffs, CFO Richard McPhail said: “Due to our scale, the great associations that we have with our suppliers and the productivity that we continue to drive in our business, we intend to generally maintain our current price levels in our portfolio.”

Customer transactions increased a 2.1% year -on -year, a good signal since they have been falling in most quarters over the last three years. The average price of the ticket in the first quarter, that is, the customer’s receipt, remained an interannual flat at $ 90.71.

Comparable sales still fell in general with respect to the previous year, but the market felt encouraged to see that they were well above their lowest point in 2023 and 2024.

For the full fiscal year 2025, the management expects income to increase 2.8% in annual terms and that the adjusted EPS falls around 3% compared to 2024.

The Home Depot Shares Prognosis

HD shares jumped to about $ 390 at the opening, which is key because it breaks the simple mobile (SMA) average of 200 days. HD shares have been in a downward trend with the 50 -day mobile average following its 200 -day counterpart since the start of the new tariff regime in early April.

Support and resistance are very close to each other. The level of $ 396 acted as resistance at the end of last year and then again in February. It should prove to be an obstacle once again.

The support is between $ 370 and $ 380, since this range has received a lot of volume during the last week, as well as a resistance point in August 2024.

HD Shares Daily Chart