- Home Depot’s Q4 comparable sales rose by 0.8%, exceeding expectations of a 1.71% decline.
- In the US, comparable sales increased by 1.3%, surpassing the anticipated 1.02% drop.
- Net sales reached $39.70 billion, a 14% year-over-year increase, beating estimates of $39.13 billion.
- Adjusted EPS was $3.13 compared to an estimate of $3.04.
- Customer transactions rose by 7.6%, outperforming the expected 4.47% increase.
- The average ticket sales were $89.11, slightly above the $88.84 estimate.
- Merchandise inventories totaled $23.45 billion, above the $22.71 billion expected.
- Sales per square foot rose by 1.2%.
- Total store count held steady at 2,347, matching estimates.
- SG&A expenses increased by 16% year-over-year to $7.73 billion, exceeding the estimated $7.56 billion.
- The board approved a 2.2% increase in the quarterly dividend, amounting to $2.30 per share.
- The CEO noted higher engagement in home improvement spending despite macroeconomic uncertainty and higher interest rates.
- Q4 2024 included a 14th week, contributing an additional $2.5 billion in sales, though this is excluded from comparable sales figures.
Home Depot Inc on Smartkarma
Analysts at Baptista Research on Smartkarma have provided insightful coverage of Home Depot Inc, a leading home improvement retailer. In their research report titled “Home Depot’s DIY Comeback: How Falling Interest Rates Could Skyrocket Its Sales – Major Drivers,” they highlighted the company’s third-quarter 2024 financial performance. Home Depot reported total sales of $40.2 billion, showing a 6.6% increase from the previous year. However, a 1.3% decline in comparable sales indicated ongoing demand challenges in the home improvement sector.
Additionally, Baptista Research‘s analysis titled “Home Depot: Recent Acquisitions & A Focus on the Professional Customer Segment Is Expected To Drive Growth!” focused on the company’s second-quarter 2024 earnings. Despite a tough macroeconomic environment with high interest rates and restrained consumer spending, Home Depot managed to achieve modest top-line growth. Sales for the quarter stood at $43.2 billion, a slight 0.6% increase year-over-year, with contributions from the recent SRS Distribution acquisition playing a significant role in boosting revenue.
A look at Home Depot Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Home Depot Inc, a well-known home improvement retailer, has a mixed outlook based on the Smartkarma Smart Scores. While scoring moderately on Dividend, Growth, and Momentum at 3, the company lags slightly in terms of Value and Resilience with scores of 2. This indicates that although Home Depot shows promise in certain areas like dividend payouts and growth potential, it may face challenges in terms of its overall value and resilience in the market.
The overall description of Home Depot Inc as a home improvement retailer that offers a variety of building materials and services across several countries like the U.S., Canada, China, and Mexico, sets a solid foundation for potential growth. However, the Smart Scores suggest that investors may need to carefully consider the company’s valuation and ability to withstand market fluctuations before making long-term investment decisions.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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