Home Depot's Q2 Earnings Preview: Will the Company Beat Expectations?

The Home Depot is set to report its Q2 earnings on August 18 before market open. According to the Zacks Consensus Estimate, the company's top line will have increased year over year in the quarter. The consensus estimate for fiscal second-quarter revenues is $47.5 billion, indicating growth of 4.9% from the year-ago quarter's actual.

The company's quarterly earnings per share (EPS) are expected to be $4.71, which represents a 0.6% increase from the previous year's reported figure. The Atlanta-based home improvement retailer delivered an average earnings surprise of 1.6% over the past four quarters.

Our model predicts that Home Depot will beat its earnings estimate this quarter, citing a positive Earnings ESP and a Zacks Rank #3. However, underlying demand remains constrained by elevated mortgage rates, weak housing turnover, and consumer uncertainty, which continue to pressure larger discretionary remodeling projects.