Home Depot Tops Earnings Estimates Amid 'Frozen' Housing Market

Home Depot reported its quarterly sales and profits exceeded Wall Street's expectations as the company maintained its full-year outlook despite challenges from a sluggish housing market and rising costs.

The retailer beat estimates with its latest quarterly results, announcing adjusted earnings of $4.92 per share on a 6% year-over-year rise in revenue to $47.86 billion in the second quarter, both figures topping analysts' projections compiled by Visible Alpha.

Home Depot reaffirmed its full-year forecasts of a 2.5% to 4.5% rise in sales and adjusted EPS growth of up to 4%, as it grapples with a sluggish housing market and high costs. The company said its outlook includes benefits from the Trump administration's tariff refunds, which are expected to partially offset higher-than-expected fuel and product costs.

Chief Financial Officer Richard McPhail described the current housing market conditions as 'frozen', stating that consumers have been 'hesitant' about committing to expensive home improvement projects. The company is looking to grow its sales to professional contractors and consumers pursuing smaller DIY projects, as big-ticket purchases remain under pressure.