Core Viewpoint - Home Depot Inc reported strong fourth-quarter results, leading to a rise in its stock price, with analysts providing positive outlooks despite conservative guidance for future growth [1][2]. Financial Performance - Home Depot's fourth-quarter adjusted earnings were $3.13 per share, exceeding the consensus estimate of $3.01 per share [2]. - The company's net sales increased by 14.1% year-on-year to $39.7 billion, surpassing the consensus of $39.2 billion [2]. - Comparable sales grew by 0.8%, which was better than the expected contraction of 1.5% [4]. Growth Metrics - There was an acceleration in both average ticket size and transactions during the quarter, marking the first positive transaction growth since Q1 2021 [3]. - Management provided guidance for 2025, projecting sales growth of approximately 2.8%, which is below the consensus of 3.3% [3]. Analyst Ratings - Goldman Sachs analyst Kate McShane maintained a Buy rating with a price target of $410 [2]. - JPMorgan analyst Christopher Horvers kept an Overweight rating, noting the first year-on-year earnings growth since Q4 2022 [4]. Future Guidance - Home Depot expects a 1.0% increase in comparable sales, 2.8% sales growth, and a gross margin of 33.4%, which is flat year-on-year [5]. - The company anticipates a 2% decline in adjusted EPS to $14.93 [5].

Core Viewpoint - Home Depot's fourth-quarter financial results show a revenue increase of 14%, but the underlying economic challenges persist, impacting comparable-store sales and profitability [3][4][6]. Financial Performance - Revenue for Q4 FY24 was $39.7 billion, up from $34.8 billion in Q4 FY23, representing a 14% increase and beating expectations [2]. - Adjusted earnings per share rose to $3.13 from $2.86, a 9% increase, also exceeding expectations [2]. - Operating margin decreased to 11.3% from 11.9%, a decline of 60 basis points [2]. Comparable-Store Sales - Comparable-store sales increased by 0.8% in Q4, with U.S. stores performing slightly better at 1.3% [5]. - For the full year, comparable-store sales were down 1.8%, indicating ongoing challenges in consumer traffic [5]. Economic Environment - The challenging macroeconomic environment, characterized by rising interest rates, has negatively impacted the housing market and home improvement spending [3][10]. - Operating expenses grew faster than revenue, with selling, general, and administrative expenses increasing by 15.7% in Q4 and 8.1% for the year [7]. Market Reaction - Shares showed a slight increase in premarket trading, reflecting that results were in line with investor expectations [8]. Future Outlook - Management projects revenue growth of just below 3% for 2025, with comparable-store sales expected to rise about 1% [9]. - The company plans to open 13 new stores to drive revenue growth, but profitability is expected to remain under pressure, with operating margin forecasted to decline to 13% [9].

Financial Data and Key Metrics Changes - Sales for fiscal 2024 were $159.5 billion, an increase of 4.5% from the previous year. Comp sales declined 1.8% from the same period last year [7][47] - Adjusted diluted earnings per share for fiscal 2024 were $15.24, essentially flat compared to the prior year [50] - In the fourth quarter, comp sales increased 0.8% from last year, with U.S. stores up 1.3% [8][45] - Gross margin for the fourth quarter was approximately 32.8%, a decrease of 25 basis points from the previous year [47] - Operating margin for the fourth quarter was 11.3%, compared to 11.9% in the fourth quarter of 2023 [49] Business Line Data and Key Metrics Changes - Comp performance for the fourth quarter saw ten of the sixteen departments posting positive comps, including appliances and building materials [32][35] - Comp transactions increased 0.6% and comp average ticket increased 0.2% during the fourth quarter [33] - Incremental sales of over $1 billion were driven by investments in pro capabilities across seventeen markets [27][110] Market Data and Key Metrics Changes - The company reported a net contribution of approximately $220 million in hurricane-related sales, positively impacting total company comps by approximately 65 basis points for the quarter [46] - Foreign exchange rates negatively impacted total company comps by approximately 70 basis points for the quarter [46] Company Strategy and Development Direction - The company remains focused on creating the best interconnected shopping experience and growing its pro wallet share through strategic investments [9][11] - The acquisition of SRS contributed $6.4 billion in sales for the seven months of ownership, with expectations for mid-single-digit organic sales growth in fiscal 2025 [12][15] - Plans to open thirteen new stores in fiscal 2025, expanding the company's footprint in areas of population growth [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying momentum of the business, despite uncertainties in the macroeconomic environment [56] - The outlook for fiscal 2025 includes total sales growth of approximately 2.8% and comp sales growth of approximately 1% [57][59] - Management noted that while the home improvement market is normalizing, uncertainties remain, particularly regarding larger remodeling projects [56][68] Other Important Information - The company announced a 2.2% increase in its quarterly dividend to $2.30 per share, equating to an annual dividend of $9.20 [53] - Merchandise inventories were $23.5 billion, up approximately $2.5 billion versus last year, with inventory turns increasing to 4.7 times [52] Q&A Session Summary Question: On the macro housing backdrop and comp sales - Management noted that while there was slight improvement in housing turnover, they do not expect a significant rebound in new housing starts or mortgage rates [66][68] Question: On appliances and paint category performance - Management indicated that the positive performance in these categories was driven by both volume and market share gains [78][82] Question: On monthly U.S. comps and weather impact - Management acknowledged that weather had a significant impact on January results, complicating the analysis of exit run rates [88] Question: On market share assumptions for 2025 - Management expects overall market conditions to remain flat, with continued share gains driven by investments in interconnected capabilities and the SRS acquisition [94][96] Question: On the impact of government efficiency measures and immigration policy - Management has not seen significant impacts from these factors on business performance [104] Question: On incremental sales from pro capabilities - Management reported generating $1 billion in incremental sales in seventeen markets, outperforming top markets [110][111] Question: On operating margin guidance and SRS impact - Management clarified that the operating margin guidance reflects a mix impact from SRS and natural deleverage due to comp performance [140]

Core Insights - Home Depot Inc. reported strong fourth-quarter fiscal 2024 results, with earnings and sales exceeding expectations and showing year-over-year improvement [1][2][3] Financial Performance - Adjusted earnings per share increased by 9.4% to $3.13 from $2.82 in the same quarter last year, surpassing the Zacks Consensus Estimate of $3.04 [2] - Net sales rose 14.1% to $39.7 billion from $34.8 billion year-over-year, also exceeding the Zacks Consensus Estimate of $39.14 billion [3] - The additional week in the fiscal fourth quarter contributed $2.5 billion to sales [3] - Comparable sales improved by 0.8%, with U.S. comparable sales rising 1.3% due to increased customer transactions and average ticket size [5] Profitability Metrics - Gross profit increased by 13.3% year-over-year to $13 billion, although gross margin declined by 30 basis points to 32.8% [6][9] - SG&A expenses rose 15.7% to $7.7 billion, with SG&A as a percentage of sales increasing by 30 basis points to 19.5% [8] - Adjusted operating income grew by 10.7% to $4.6 billion, while the adjusted operating margin contracted by 40 basis points to 11.7% [9] Future Outlook - For fiscal 2025, Home Depot anticipates a sales increase of 2.8% and comparable sales growth of 1% [12] - The company estimates a gross margin of 33.4% and an operating margin of 13% for fiscal 2025, with adjusted operating margin expected at 13.4% [13] - GAAP earnings per share are projected to decline by 3%, while adjusted earnings per share are expected to fall by 2% year-over-year [14]

Market Overview - Major indexes have experienced a pullback from all-time highs, with the Dow, Nasdaq, S&P 500, and Russell 2000 showing slight pre-market gains [1] - Approximately 1000 earnings reports are expected this week, with NVIDIA's earnings report being highly anticipated [1] Company Earnings - Home Depot reported Q4 earnings of $3.13 per share, exceeding the Zacks consensus of $3.04 and the previous year's $2.82, with revenues of $39.7 billion surpassing expectations by +3.8% [2] - Planet Fitness posted earnings of 70 cents per share, beating the expected 62 cents, and revenues of $340.45 million exceeded the Zacks consensus by +4.24%, significantly higher than the $285 million reported a year ago [3] - Despite strong earnings, Planet Fitness shares fell -1.7% due to tepid earnings guidance [3] Housing Market - The Case Shiller Home Price Index showed an overall growth of +3.9% in December, slightly above the +3.7% growth for 2024 [4] - The 10-city survey recorded a +5.1% increase, while the 20-city index reached +4.5%, both outperforming their respective 2024 projections [4] - New York City home prices increased by +7.7%, with Chicago and Boston following at +6.6% and +6.3%, respectively, indicating a shift in growth trends [5]

Home Depot (HD 3.67%) provided mixed results with its fourth-quarter earnings and forward guidance today, but the stock is in rally mode. The results brought somewhat of a relief rally after shares of the leading home improvement company declined by almost 8% in the past month.Home Depot stock moved higher by 3.5% this morning as of 11:25 a.m. ET. Beyond a bounce off the recent decline, there are good business reasons why investors are seeing the quarterly report as a net positive today.Home Depot navigates ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Home Depot TodayHDHome Depot$396.15 +13.73 (+3.59%) 52-Week Range$323.77▼$439.37Dividend Yield2.27%P/E Ratio26.93Price Target$433.44Add to WatchlistHome Depot’s NYSE: HD Q4 2024 report and guidance for 2025 have plenty to be unhappy about, but the simple truth is that this company turned a corner in 2024. It is on track for its stock to hit new highs that could come before the middle of the year. At face value, current conditions offset the warning housing markets may not improve. Those include a reversion ...

Home Depot Inc (NYSE:HD) surpassed Wall Street’s fourth-quarter estimates, reporting earnings of $3.02 per share -- slightly above the expected $3.01 -- while revenue came in at a higher-than-anticipated $39.70 billion. Despite this strong showing, the company still issued a lackluster forecast for 2025, as higher interest rates and housing prices hurt demand for large remodeling projects. At last glance, HD was up 2.9% to trade at $393.33, bringing it back above breakeven for 2025. On track to snap a six-d ...

Home Depot reported a robust fourth quarter with significant revenue growth, though macroeconomic pressures remain a concern.Home improvement retail giant Home Depot (HD 2.77%) reported fourth-quarter and full-year 2024 earnings on Tuesday, Feb. 25, that exceeded analysts' consensus expectations. Fourth-quarter revenue of $39.7 billion jumped 14.1% from the previous year's quarter, outperforming expectations of $39.2 billion. This increase was supported by an extra operating week in Q4, contributing approxi ...