Analyst’s Disclosure: I/we have a beneficial long position in the shares of HD, LOW, JNJ, TFC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The contents of this article, my previous articles, and my comments are for informational purposes only and may not be considered ...

Company Earnings Summary - Home Depot (HD) reported earnings of $3.78 per share, beating the Zacks consensus estimate of $3.64 by +3.85%, with quarterly revenues of $40.22 billion, exceeding expectations by +2.17%. This marks the fourth consecutive earnings beat for the company, and shares rose +1.7% following the announcement, with an +18% increase year-to-date [4]. - Shopify (SHOP) experienced a revenue growth of +26% to $2.16 billion, surpassing analyst expectations of $2.11 billion. Despite a slight miss on earnings per share at 26 cents, shares surged +22% post-report, reflecting strong investor confidence [5]. - Tyson Foods (TSN) achieved a significant earnings beat of +43.75%, reporting 92 cents per share against an expectation of 64 cents, with revenues of $13.57 billion, exceeding the forecast of $13.33 billion. Gross margins improved to +7.8%, significantly higher than the +3.1% from the previous year, leading to a +6% increase in pre-market shares [6]. Market Overview - The S&P 500 index has seen five consecutive sessions of gains, reaching new closing highs, although it is currently down -4 points. The Nasdaq is also at all-time highs but is down -3 points, while the Dow is up +31 points. The small-cap Russell 2000 index is down -14 points. Bond yields are rising, with the 10-year yield at +4.392% and the 2-year yield at +4.334% [3].

Home Depot expects a smaller decline in annual store sales following better-than-expected performance over the past three months, which was partly driven by hurricane recovery efforts. "As weather normalized, we saw better engagement across seasonal goods and certain outdoor projects as well as incremental sales related to hurricane demand," CEO Ted Decker said in the company's earnings release Tuesday. Decker told analysts Tuesday that the company's third-quarter performance exceeded expectations despite " ...

Core Insights - Home Depot's focus on the professional market remains strong despite a decline in consumer spending on home improvement [1][2] - The company reported a 6.6% year-over-year increase in quarterly sales, reaching $40.2 billion, and raised its full-year outlook [3] Company Strategy - Home Depot has invested billions over the past five years to enhance its professional offerings, including new distribution centers and improved supply chain logistics [3] - The company is shifting its focus to B2B demand among trade professionals, which has shown resilience amid economic uncertainty [2][4] Digital Transformation - A key aspect of Home Depot's strategy is its digital overhaul, providing pros with a faster shopping experience, job site deliveries, bulk pricing, and personalized accounts [5] - The company has ramped up workforce training to better support professional clients, ensuring employees can address technical questions and recommend tailored solutions [6] Market Dynamics - The pro market is inherently more stable due to contractual obligations of commercial clients, which helps maintain a steady demand pipeline [4] - Home Depot's pro ecosystem has shown growth across 17 markets, with strong performance in lumber, plumbing, and hardware [7] Recent Developments - Earlier this year, Home Depot acquired SRS for $18.2 billion, enhancing its distribution capabilities for roofing and construction projects [8] - Despite the positive sales growth, the company has experienced eight consecutive quarters of negative comparable sales and anticipates opening around a dozen new stores this fiscal year [9]

Home Depot (HD) reported $40.22 billion in revenue for the quarter ended October 2024, representing a year-over-year increase of 6.7%. EPS of $3.78 for the same period compares to $3.81 a year ago.The reported revenue represents a surprise of +2.17% over the Zacks Consensus Estimate of $39.36 billion. With the consensus EPS estimate being $3.64, the EPS surprise was +3.85%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine t ...

Core Insights - Home Depot Inc (NYSE:HD) reported third-quarter results, surpassing both revenue and earnings estimates, and raised its same-store annual sales and growth forecasts due to strong demand following hurricane season [1] Stock Performance - HD shares increased by 0.2%, trading at $409.39, with an 18.5% gain projected for 2024, marking the highest level in nearly a month and approaching the two-year high of $418.61 reached on October 16 [2] Analyst Sentiment - Among 35 analysts, eight rated HD as a "hold," while the 12-month consensus target price is $414.77, aligning with the current stock price [3] Options Market Activity - Options trading volume is significantly high, at four times the average, with 7,958 calls and 4,412 puts exchanged, indicating interest in the November 420 call [3] - The Schaefer's Volatility Index (SVI) for HD is at 23%, reflecting low volatility expectations, positioned in the low 21st percentile of the past year's readings [4]

Financial Data and Key Metrics Changes - Total sales for Q3 2024 were $40.2 billion, an increase of 6.6% from the same period last year [6][28] - Comparable sales declined by 1.3% year-over-year, with U.S. stores experiencing a negative comp of 1.2% [6][28] - Adjusted diluted earnings per share were $3.78, down from $3.85 in Q3 2023, reflecting a decrease of approximately 2% [6][31] - Gross margin was approximately 33.4%, a decrease of 40 basis points from the previous year [29] - Operating margin for Q3 was 13.5%, compared to 14.3% in Q3 2023 [30] Business Line Data and Key Metrics Changes - Positive comps were seen in power, outdoor garden, building materials, indoor garden, and paint departments, while lumber, plumbing, and hardware were above the company average [21] - Comp transactions decreased by 0.6%, and comp average ticket decreased by 0.8% [21] - Pro sales outpaced DIY customer sales, indicating stronger performance in the professional segment [22] Market Data and Key Metrics Changes - Mexico and Canada posted comps above the company average, with Mexico showing positive comps in the quarter [7] - The impact of hurricanes contributed approximately $200 million in sales, positively affecting total company comps by about 55 basis points for the quarter [29] Company Strategy and Development Direction - The company aims to enhance the interconnected experience and grow pro wallet share through differentiated capabilities and new store openings [9][10] - Investments are being made in supply chain capabilities, including direct fulfillment centers to improve delivery speeds [10] - The focus remains on supporting the growth of the SRS team and leveraging cross-sale opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged continued macroeconomic uncertainty and its impact on larger remodeling projects due to higher interest rates [9][68] - The company updated its fiscal 2024 guidance, expecting total sales growth of approximately 4% and adjusted diluted earnings per share to decline by about 1% [33][35] - Management remains optimistic about market share growth despite current challenges [35] Other Important Information - The company opened 5 new stores, bringing the total store count to 2,345 [31] - Merchandise inventories increased to $23.9 billion, up approximately $1.1 billion compared to Q3 2023 [32] - Return on invested capital was approximately 31.5%, down from 38.7% in Q3 2023 [32] Q&A Session Summary Question: Impact of hurricane-related sales - Management noted that hurricane-related sales contributed approximately 55 basis points to Q3 comps, with a focus on generators and cleanup products [41][42] Question: Needs-based vs discretionary projects - Management indicated that needs-based projects are being completed, while larger discretionary projects are being deferred due to economic conditions [44] Question: Progress with SRS and cross-selling - Management reported strong progress with SRS, contributing $2.9 billion in Q3, and highlighted the potential for cross-selling opportunities [51][49] Question: Gross margin pressures - Management explained that the primary impact on gross margin was from the mix due to SRS, with an expected annualized impact of about 70 basis points [54][56] Question: Market share performance - Management expressed confidence in gaining market share, particularly in seasonal categories and building materials [61][63] Question: Future housing market outlook - Management discussed the relationship between interest rates and housing turnover, emphasizing the need for stability in rates to encourage home improvement projects [96][97]

Home Depot NYSE: HD is moving higher on the combined forces of outperformance and an expectation for tailwinds to develop in 2025. Better-than-expected consumer trends, acquisitions, and the pro-business drive outperformance in 2024, leading the company to improve guidance against a backdrop of negative sentiment. Tailwinds will form in 2025 as policy headwinds ease and Trump’s business and consumer-friendly policies spur activity, specifically in the housing market.  Home Depot TodayHDHome Depot$408.88 +0 ...

About this content About William Farrington William kickstarted his career as a researcher and reporter for a global legal publication, covering everything from public law to M&A. Before moving to Proactive Investors, he worked as a reporter for a major fintech company with a focus on cryptocurrency and blockchain technology. Harking from Queensland, Australia, William obtained first-class honours in journalism and media from Birkbeck University before going on to complete an MA in creative and critical wri ...

Group 1 - Home Depot reported quarterly earnings of $3.78 per share, exceeding the Zacks Consensus Estimate of $3.64 per share, but down from $3.81 per share a year ago, representing an earnings surprise of 3.85% [1] - The company achieved revenues of $40.22 billion for the quarter ended October 2024, surpassing the Zacks Consensus Estimate by 2.17% and increasing from $37.71 billion year-over-year [2] - Home Depot has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Group 2 - The stock has gained approximately 17.8% since the beginning of the year, while the S&P 500 has increased by 25.8% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend of estimate revisions for Home Depot is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Group 3 - The current consensus EPS estimate for the upcoming quarter is $2.99 on revenues of $38.72 billion, and for the current fiscal year, it is $14.99 on revenues of $157.67 billion [7] - The Building Products - Retail industry, to which Home Depot belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a positive outlook for the sector [8] Group 4 - Lowe's, another company in the same industry, is expected to report quarterly earnings of $2.80 per share, reflecting a year-over-year decline of 8.5%, with revenues anticipated to be $19.92 billion, down 2.7% from the previous year [9]