Home Depot Tops Estimates, Lifts Sales Outlook

Group 1 - Home Depot's third-quarter revenue reached $40.22 billion, exceeding analysts' expectations of $39.25 billion and up from $37.71 billion a year ago [1] - Net income for the quarter was $3.65 billion, surpassing the consensus expectation of $3.58 billion but lower than last year's $3.81 billion [1] - The company raised its fiscal 2024 revenue growth projection to approximately 4% year-over-year, an increase from the previous estimate of 2.5% to 3.5% [2] Group 2 - Home Depot adjusted its comparable store sales forecast, now expecting a decline of 2.5% from last year instead of the previously anticipated 3% to 4% decline [2] - The company's shares rose by 1.6% to $415 following the release of the results, building on a 17% increase since the beginning of the year [2] Group 3 - CEO Ted Decker noted that while macroeconomic uncertainty persists, the third-quarter performance exceeded expectations, driven by better engagement in seasonal goods and hurricane-related sales [3] - The impact of the Federal Reserve's interest-rate cut was not specifically addressed in the earnings release, but high interest rates and inflation have led to a decline in "big ticket" purchases [3] Group 4 - Analysts from JPMorgan highlighted the importance of monitoring mortgage rates, suggesting that if rates decrease and housing becomes more affordable, it could positively impact sales for Home Depot and Lowe's [4]