- Home Depot’s sales figures missed estimations in the 1st quarter – the comparable sales were -2.8% as compared to the estimated -2.19%.
- US comparable sales also saw a decrease, it was -3.2% compared to the estimation of -2.35%.
- The net sales of Home Depot were recorded at $36.42 billion, this was a decrease of -2.3% year on year, the estimation was $36.66 billion.
- Earnings per share (EPS) was $3.63, a decrease from $3.82 year on year.
- Customer transactions saw a decrease of -1%, this was however fairly close to the estimate of -1.09%.
- Average ticket sales also followed suit with a decrease, it was recorded at $90.68, lower than the estimated $90.77.
- Stock of merchandise that is yet to be sold i.e. inventories were $22.42 billion, less than the estimated $23.46 billion.
- Total location count of company’s stores rose by +0.6% year on year to 2,337, just one short of the estimated 2,338.
- Selling, General and Administrative (SG&A) expenses however, increased to $6.67 billion, an increment of +4.9% year on year; this was less than the estimated costs of $7.68 billion.
- The company reaffirmed its fiscal 2024 projection, which is counting on 53 weeks of operating results.
- Ted Decker, the chair, president and CEO of the company said they feel confident about store readiness, product assortment and employee engagement despite a delayed spring start and a slowdown in certain discretionary projects that led to lower sales in the quarter.
- Of the investment advice given for Home Depot’s stock, 22 suggested to buy, 14 to hold and 3 to sell.
Home Depot Inc on Smartkarma
Analysts at Baptista Research have been closely monitoring Home Depot Inc on Smartkarma, a platform for independent investment research. In their report titled “The Home Depot Inc.: Strategic Investment in Pro Ecosystem & Interconnected Experience & Other Developments – Major Drivers,” Baptista Research delves into the company’s performance, highlighting opportunities and challenges faced in Q4 of 2023. The fiscal year saw a 3% sales decline, comp sales dropped by 3.2%, and EPS stood at $15.11. Baptista Research aims to assess influencing factors on the company’s price in the near future and conducts an independent valuation using a Discounted Cash Flow (DCF) methodology.
Furthermore, Baptista Research explores Home Depot Inc‘s potential for market expansion in another report titled “The Home Depot Inc.: Can The Acquisition Of Construction Resources Further Expand Their Market Share? – Major Drivers.” Home Depot exceeded analyst expectations for revenue and earnings in the third quarter, aligning with their strategic initiatives to enhance the shopping experience, especially for Pro customers. The performance reflected positive trends observed in previous quarters. Analysts are optimistic about Home Depot’s growth prospects and the impact of strategic acquisitions on expanding their market share.
A look at Home Depot Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Home Depot Inc, the well-known home improvement retailer, is showing promise for the long term based on its Smartkarma Smart Scores. With a strong Growth score of 4 and Momentum score of 3, the company is positioned for continued expansion and market presence. While Value and Resilience scores are moderate at 2, the Dividend score sits at a respectable 3, indicating potential for investor returns. Home Depot’s diverse product range and services offered across various locations, including the U.S., Canada, China, and Mexico, further bolster its outlook.
In summary, Home Depot Inc‘s Smartkarma Smart Scores reveal a positive trajectory for the company’s long-term performance. With a focus on growth and maintaining momentum, coupled with a solid dividend score and a presence in multiple markets, Home Depot appears well-positioned to capitalize on the opportunities in the home improvement retail sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
