Home Depot beats earnings estimates, shows signs of improvement, raises guidance

From CNBC: 2024-11-12 14:26:02

Home Depot exceeded expectations with net sales of $40.2 billion in Q3, up 6.6% YoY. Adjusted EPS was $3.78, beating estimates of $3.64. Same store sales fell 1.3% companywide and 1.2% in the U.S., better than expected. The retailer raised guidance, expecting a 4% sales increase for the year. Shares remained flat.

Despite challenges from high interest rates and economic uncertainty, Home Depot shows signs of improvement with same store sales in the U.S. and globally. The company anticipates a rebound in 2025, prompting a positive outlook. Quarterly results indicate growth in certain departments, while management raised full-year guidance, expecting a 4% sales increase.

Home Depot was added to the portfolio ahead of anticipated interest rate cuts to stimulate housing market activity. Transactions and average ticket size decreased in Q3, but power outdoor garden and paint departments showed growth. Recent acquisitions contributed significantly to sales. The company raised its full-year guidance to reflect continued demand and storm-related sales.



Read more at CNBC:: Home Depot is on the verge of earnings rebound after beating estimates