Shares of House Depot (NYSE: HD) have gained 13% over the previous 12 months. The house enchancment retailer is scheduled to report its earnings outcomes for the fourth quarter of 2024 on Tuesday, February 25, earlier than market open. Right here’s a have a look at what to anticipate from the earnings report:
Income
Analysts are projecting income of $38.8 billion for the fourth quarter of 2024, which signifies a development of over 11% from the identical interval a yr in the past. Within the third quarter of 2024, gross sales elevated practically 7% year-over-year to $40.2 billion.
Earnings
The consensus estimate for This autumn 2024 earnings per share is $3.02, which compares to EPS of $2.82 reported in This autumn 2023. In Q3 2024, EPS fell 4% year-over-year to $3.67.
Factors to notice
Final quarter, House Depot’s gross sales benefited from favorable climate, which drove engagement throughout seasonal items and out of doors initiatives. It additionally noticed incremental gross sales from hurricanes. The corporate anticipates hurricane-related demand to proceed within the fourth quarter. This demand is predicted to mirror within the high line.
On the similar time, bigger transforming initiatives might proceed to face stress from greater rates of interest and macroeconomic uncertainty. In Q3, comp transactions have been down 0.6% whereas comp common ticket was down 0.8%. Massive-ticket comp transactions, that are ones over $1,000, have been down 6.8% YoY. Bigger discretionary initiatives, resembling kitchen and bathtub remodels, witnessed softer engagement.
House Depot continues to see power in its Professional buyer section. Final quarter, Professional gross sales have been optimistic and outpaced the do-it-yourself, or DIY buyer. The corporate’s investments in its Professional Ecosystem, which is now in 17 US markets, are anticipated to proceed yielding advantages. The acquisition of SRS, which provides entry to the specialty commerce Professional buyer, supplies cross-sale alternatives and aggressive benefits.
The corporate’s continued investments in its shops, product assortment, and digital capabilities are additionally anticipated to yield advantages.
