Shares of Home Depot Inc (NYSE:HD) edged higher in early trading on Tuesday, after the company reported its first-quarter (Q1) results on Monday.



Here are the key analyst insights:



<ul>
<li>Goldman Sachs analyst Kate McShane reiterated a Buy rating and price target of $409.</li>



<li>JPMorgan analyst Christopher Horvers reiterated an Overweight rating on the stock.</li>
</ul>



Check out other analyst stock ratings.



Goldman Sachs: Home Depot's net sales grew 4.8% year-on-year to $41.8 billion, while adjusted earnings came in at $3.43 per share, with both figures topping consensus estimates of $41.5 billion and $3.41 per share, respectively, McShane said in a note.



She added the quarter's misses:



<ul>
<li>Comparable sales grew 0.6% year-on-year but missed the consensus estimate of 0.8%</li>



<li>Average ticket rose 2.2% year-on-year, decelerating from the previous quarter's 2.4%</li>



<li>Transactions declined by 1.3% year-on-year</li>



<li>Operating margin contracted by 89 basis points (bps) year-on-year to 12.3%</li>



<li>Gross margin shrunk 77 bps to 33.0%</li>
</ul>



The analyst mentioned that management reiterated their full-year guidance, including:



<ul>
<li>Sales growth between 2.5% and 4.5%</li>



<li>Comparable sales growth between flat to up 2%</li>



<li>Gross margin of around 33.1%</li>



<li>Adjusted earnings growth is between flat to 4.0%</li>
</ul>



JPMorgan: Home Depot reported earnings of $3.43 per share, topping Street expectations of $3.41 per share, despite a tax headwind of 3 cents per share, Horvers said. U.S. comps of 0.4% missed the consensus of 0.5%, although forex added 55 basis points (bps) to total comps, he added.



While the company believes weather was &#34;a net headwind&#34; in the quarter, its performance may improve in the second quarter, the analyst stated.



He added that these results suggest that Lowe’s Companies Inc (NYSE:LOW), which is scheduled to report its quarterly results on Wednesday, would report a beat, with comps of 1.4% versus the Street’s 0.7% expectation.



<h2>Price Action</h2>



Shares of Home Depot had risen by 0.28% to $300.61 at the time of publication on Tuesday.



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Read Also:

Home Depot Warns Weak Housing Market Is Dragging Down Bigger Renovation Plans




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Image: Shutterstock

NAIL

Home Depot's Q1 results exceeded estimates, with net sales up 4.8% to $41.8 billion and adjusted earnings at $3.43 per share. Analysts from Goldman Sachs and JPMorgan maintained bullish ratings, with price targets of $409 and Overweight, respectively. However, comparable sales growth of 0.6% fell short of expectations. Despite challenges, management reaffirmed full-year guidance, anticipating sales growth of 2.5% to 4.5%. Shares rose 0.28% to $300.61 following the report.

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Home Depot

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Lowes

GS Hldg R

JPMORGAN CHASE & CO. 4.20% DEP SHS REPSTG 1/400TH PFD SER MM

JPMORGAN CHASE & CO. 6%NON CUM DEP SHS REP 1/400TH PFD SER EE

JPMORGAN CHASE & CO. DEP REP 1/400TH (5.75% NON CUM PFD DD)

JPMORGAN CHASE & CO. 4.625% DEP SH RE 1/400TH INT NO CU PF LL

JPMorgan Chase & Co.

JPMORGAN CHASE & CO. 4.55% DEP SHS REPSTG 1/400TH PFD SER JJ

JPMORGAN CHASE & CO. 4.75 DEP SHS REP 1/400 NCUM PFD SR GG

Home Depot Ticks Up On Earnings Beat, Analysts Stick With Bullish Calls