Home Depot beat Wall Street’s first-quarter revenue and domestic same-store sales expectations, and maintained its full-year guidance.

HD's Q1 sales reflect gains from customer engagement in smaller projects and spring events. Earnings continue to reflect higher costs and soft margins.

Since the article was published, Home Depot's stock has declined 7.02%, significantly underperforming the S&P 500, which gained 1.13% during the same period.

Home Depot reaffirmed it forecast of total sales growth of 2.8% year-over-year, reaching $163.98 billion, below the consensus of $164.17 billion. The company anticipates adjusted earnings per share will decline about 2% to $14.94, lower than the $14.99 consensus estimate.

Analysts expect a muted report from the home improvement giant, reflecting softer demand and fewer store visits amid a sluggish housing market.

Lowe's Companies ( NYSE: LOW) gained in premarket action despite beating consensus estimates with its Q1 earnings report and sticking by its full-year guidance despite the macroeconomic backdrop.

Home Depot's first-quarter financial results could show the impact of tariffs, mortgage rates and consumer spending habits.