By Denny Jacob

Home Depot is scheduled to report its fourth-quarter results Tuesday before the market opens. Here is what you need to know.

REVENUE: The home-improvement retailer is expected to post $39.15 billion in revenue for the quarter, compared with $34.79 billion in the year-ago period, according to FactSet.

NET INCOME: The Atlanta company is expected to report $2.97 billion in net income, up from $2.80 billion in the prior year period, according to FactSet.

ADJUSTED EARNINGS: Stripping out certain one-time items, earnings are expected to come in at $3.04 a share.

The stock price rose 5% during the quarter and recently traded around $384.40.

WHAT TO WATCH

--Investors will be looking for signs of optimism that the home-improvement sector has returned to growth despite last year's anemic home sales. Stubbornly high mortgage rates made it prohibitively expensive for many Americans to buy homes in 2024, but the bidding wars of the past half decade are fading in many parts of the country, creating a growing supply of homes and, therefore, repair and remodel work.

--Look for what the retailer said could have weighed down consumer demand, including hurricane- and wildfire-related trends, higher lumber prices, distractions around the election, tariff fears and the holiday season.

--Home Depot is expected to further discuss the anticipated effects from President Trump's trade policy, as new tariffs could pressure consumer-spending power. The company has said previously it can work through the pressure as less than half of its merchandise is sourced from outside of North America.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

February 24, 2025 14:22 ET (19:22 GMT)

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