Home Depot

Home Depot (HD) is set for continued share gains amid choppy macro conditions and expected pressure in 2024 following its Q1 results, BofA Securities said in a note. “While the macro remains choppy, and we expect continued pressure in 2024 on discretionary and big ticket, we expect HD to see continued share gains as it accelerates growth and capabilities with the complex pro, both organically and inorganically,” BofA analyst Robert Ohmes said. On Tuesday, the company reported better-than-expected Q1 EPS, supported by lower tax, while delayed spring & large project softness weighed on comparable sales. The analyst said he expects the company’s strong exposure to pro customers, on-shelf availability improvements, value proposition, and strategic investments to support its comparative sales. BofA raised its full-year estimate for Home Depot earnings per share to $15.15, from $15.10 previously, expecting higher interest income to offset the recent pause in share buybacks. BofA reiterated […]

Home Depot Inc (NYSE:HD) shares were climbing in early trading on Wednesday, despite the company reporting disappointing first-quarter sales. The results came amid an exciting earnings season. Here are some key analyst takeaways. Truist Securities On Home Depot Analyst Scot Ciccarelli reiterated a Buy rating while cutting the price target from $417 to $406. Home Depot reported its first-quarter results broadly in line with expectations, with comps down 2.8%, Ciccarelli said. While the company was tracking short of expectations for most of the quarter, “trends improved as Spring weather arrived later in April,” he added. Comps for Complex Pros were positive “in markets where it has invested in its supply chain and outside sales force,” the analyst wrote. He further stated that pricing pressures could ease through the year and “should be an incremental driver to comp performance” in the back half of the year. BofA Securities On Home Depot Analyst Robert Ohmes maintained a

Home Depot’s (HD) Q1 results on May 14 will likely be “largely in line” with market expectations and the retailer will likely also reaffirm its “conservative” 2024 guidance, Wedbush said in a note to clients on Friday. “While we initially viewed the company’s 2024 guidance as conservative, we now see it as realistic given choppy sales trends partly driven by a delayed spring, increasing mortgage rates and a further-delayed housing recovery,” said Wedbush analysts including Seth Basham. However, the investment firm sees the retailer delivering a quarter-on-quarter improvement in comps to about -2%, which is in line with Wall Street estimates, and would be better than the -3.5% in Q4. Wedbush also sees Home Depot’s Q1 gross margins at 34.2% compared with consensus estimates at 34%, with “the slight upside driven by permanent cost cuts and reductions in product and transportation costs.” “All in, we see slight upside potential to

Home Depot’s (HD) decision to acquire SRS Distribution for over $18 billion presents more opportunities than risks for the company, UBS said in a note emailed Tuesday. Despite operating SRS independently, the acquisition will help evolve Home Depot’s perception by making it appear more legitimate in the complex projects market. Last year, Home Depot outlined plans to become a one-stop source for professionals in a $200 billion market segment it termed as “complex” pro projects that require many types of products and multiple days of work. The purchase will help Home Depot gain a deeper understanding of the complex pro customer segment and equip it with the tools necessary to serve the market, UBS said. Meanwhile, the acquisition will be dilutive to Home Depot’s fiscal 2025 earnings per share by 2.3% and then accretive by 0.2% to its fiscal 2026 EPS, the firm noted. UBS maintained a 12-month price target

Shares of Beacon Roofing Supply rise to a new all-time high after home-improvement retailer Home Depot struck a deal to buy its privately held competitor, SRS Distribution. Beacon Roofing Supply distributes roofing materials and complementary products, such as siding and waterproofing in North America. The Home Depot deal could be a sign that big retailers are warming up to the niche roofing industry, which has in recent years consolidated under a number of brands buying local and regional distributors. Shares of Beacon rise 3% to $97.94.

ATLANTA, GA / ACCESSWIRE / March 21, 2024 / The Home Depot is opening four new distribution centers, expanding its pro ecosystem to Detroit, southern Los Angeles, San Antonio and Toronto in 2024. The new facilities are a key component of The Home Depot’s strategy to better serve pro customers – whether they’re the pro customers that The Home Depot has traditionally served through the store, or pros working on larger, more complex projects. The new distribution centers will stock large, bulky merchandise like lumber, insulation, roofing shingles and more. With a network of distribution centers stocking a variety of product types, pros can order job lot quantities of the products they need to complete their entire projects, delivered directly to their job sites. The new distribution centers are expected to open in the first half of the year. Along with its supplier partners, The Home Depot is working to build

Home Depot (HD.US) shares offer limited upside potential as investors have already factored in the prospect of lower interest rates and a recovery in the housing market, RBC Capital Markets said in a note. Noting that it will be looking for a “more attractive entry point,” the firm said the company’s current share price embeds comparable sales growth of flat to low single digits for 2024 and low- to- mid-single digits in 2025 against Home Depot’s own 2024 guidance of a 1% decline. RBC is also now estimating a 1% decline in comparable sales, widening from a 0.3% decline previously, but raised its earnings per share estimate to $15.33 from $15.32 to account for an increase in gross margin. RBC Capital maintained its sector perform rating on the stock while raising its price target to $377 from $299.

Home Depot’s (HD) strategic investments will likely back above-market growth, while the retailer is also well placed for continued share gains even amid macroeconomic softness, BofA Securities said Wednesday in a report. BofA kept its buy rating on Home Depot and raised the price target on the stock to $400 from $372. The company reported fiscal Q4 earnings Tuesday of $2.82 per diluted share, down from $3.30 a year earlier. Analysts polled by Capital IQ expected $2.78. Net sales fell to $34.8 billion from $35.8 billion. Analysts expected $34.7 billion. The retailer’s operating margin fell 135 basis points to 11.9% from a year earlier, compared with consensus forecasts of 11.8%, BofA said. That reflects a “pull forward of pricing actions ahead of cost decreases, and a 115 bps increase in opex as a percentage of sales reflecting sales deleverage and 2023 labor investments,” according to the report. BofA said it

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target price of $338, up $11, is 22x our FY 25 (Jan.) EPS of $15.36 (down $0.20; FY 26 started at $16.55), a premium to the 10-year forward P/E of 20.6x. FQ4 (Jan.) EPS of $2.82 (-15% Y/Y) beat by $0.05 on revenue of $34.8B (-3% Y/Y), $110M above consensus. Comparable sales declined 3.5% on lower transactions (-2% Y/Y) and lower average tickets (-1% Y/Y). Pro and Do-It-Yourself segment performance was even relative to each other. Big-ticket transactions declined 6.9% Y/Y. HD guides to 1% sales growth and 1% comp. sale decline with a 53rd week lifting sales by $2.3B in FY 24. Comp sales are projected to outperform the low-single-digit industry decline warranting our P/E. EBIT margin guide of 14.1% (-10 BPS Y/Y) yields

Home Depot is expecting to see a lower degree of macroeconomic pressure in fiscal 2024 than it did last year, CFO Richard McPhail tells WSJ. “We believe our market is on its way back to normalcy,” he says. The home improvement chain is still anticipating headwinds and guiding for a 1% drop in comparable sales this year, but that would be a smaller decline than it saw in 2023. Home improvement spending is still moderating from outsized growth during the pandemic, when low interest rates, rising home values and looser spending habits pushed more people to invest in their homes.

The following is a summary of the The Home Depot, Inc. (HD) Q4 2023 Earnings Call Transcript: Financial Performance: Home Depot reported fiscal 2023 sales of $152.7 billion, a 3% decline from the previous year. Comp sales and U.S. store sales also declined by 3.2% and 3.5% respectively. Diluted earnings per share amounted to $15.11, compared to $16.69 of last year. The company’s Q4 sales were $34.8 billion, seeing a decrease of 2.9% from the previous fiscal year. Q4 gross margin was 33.1%, decreasing 20 basis points from last year, and gross margin for the year was 33.4%, a drop of 15 basis points from the prior year. Despite the decreased sales, the company managed to invest $3.2 billion back into the business, and returned $8 billion to shareholders in form of share repurchases. Business Progress: The company invested $1 billion in annualised compensation for frontline hourly associates, highlighting its