Home Depot

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 […]

Goldman Sachs analyst Kate McShane reiterated a Buy rating on Home Depot, Inc (NYSE:HD) with a price target of $393. Home Depot reported fourth-quarter fiscal 2023 EPS of $2.82, above McShane’s estimate of $2.79 and Wall Street’s estimate of $2.77. Net sales decreased 2.9% year-on-year to $34.8 billion versus McShane, and the Wall Street consensus of $34.8 billion and $34.6 billion as comparable sales decreased 3.5% Y/Y, below McShane’s estimate of -3.0% and consensus of -3.3%. During the quarter, Home Depot experienced declines in both average tickets (-1.3% Y/Y) and transactions (-1.7% Y/Y), and McShane noted that comparable sales in the U.S. decreased by 4.0% Y/Y. Home Depot’s operating margin decreased 135 bps Y/Y to 11.9% against McShane and the Wall Street estimate of 11.8% and 11.9% as gross margin decreased 20 bps Y/Y to 33.1% while total operating expenses as a % of sales increased 115 bps Y/Y to 21.2%. Management provided

Home Depot (HD) 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 for the quarter that ended Jan. 28 were $34.79 billion, down from $35.83 billion a year earlier. Analysts surveyed by Capital IQ expected $34.67 billion. For the 53 weeks of its fiscal 2024, the hardware store chain said it expects approximately 1% of diluted earnings per share growth and 1% in total sales growth. Analysts surveyed by Capital IQ expect earnings of $15.07 per diluted share on revenue of $152.55 billion. The company also raised its quarterly dividend to $2.25 per share from $2.09 per share, payable on March 21 to shareholders of record as of March 7.

Home Depot Exec Says “We Are Planning For A Year Of Continued Moderation But With Slightly Less Pressure To Comp Sales Than What We Faced In Fiscal 2023”.

Home Depot (NYSE: HD) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/16/2024 1.69% Stifel $355 → $366 Maintains Hold 02/15/2024 -6.93% Telsey Advisory Group $325 → $335 Maintains Market Perform 02/14/2024 2.8% Baird $370 → $370 Downgrades Average → Outperform 02/13/2024 11.13% Wells Fargo $385 → $400 Maintains Overweight 02/13/2024 9.19% Goldman Sachs $347 → $393 Maintains Buy 01/22/2024 — Oppenheimer Downgrades Outperform → Perform 01/16/2024 11.13% Piper Sandler $311 → $400 Upgrades Neutral → Overweight 01/10/2024 5.57% Wedbush $330 → $380 Upgrades Neutral → Outperform 01/04/2024 3.35% Barclays $325 → $372 Upgrades Equal-Weight → Overweight 12/21/2023 7.52% Truist Securities $356 → $387 Maintains Buy 12/20/2023 -1.37% Stifel $306 → $355 Maintains Hold 12/08/2023 -1.09% Truist Securities $340 → $356 Maintains Buy 11/15/2023 -5.54% Guggenheim $360 → $340 Maintains Buy 11/15/2023 -16.93% RBC Capital $303 → $299 Maintains Sector Perform 11/15/2023

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lift our 12-month target price to $327 from $311, 21x our FY 24 EPS (Jan.) of $15.56, cut from $15.94. Our multiple is a premium to the 10-year forward P/E average of 20.6x, warranted by being closer to the start of rate cuts, but offset by the 2024 remodeling contractions projected by the Leading Indicator of Remodeling Activity. We anticipate FY 24 guidance will land below The Home Depot, Inc. (NYSE: HD) ‘s market stability model across all metrics. Looking at history as a guide, we view the shares as trading at a high premium compared to the previous rate hike cycle peak in 2018-2019. We also do not believe the premium is justified by HD’s total addressable market expansion announced at the last investor and

Home Depot (NYSE: HD) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/14/2024 3.22% Baird $370 → $370 Downgrades Average → Outperform 02/13/2024 11.59% Wells Fargo $385 → $400 Maintains Overweight 02/13/2024 9.63% Goldman Sachs $347 → $393 Maintains Buy 01/22/2024 — Oppenheimer Downgrades Outperform → Perform 01/16/2024 11.59% Piper Sandler $311 → $400 Upgrades Neutral → Overweight 01/10/2024 6.01% Wedbush $330 → $380 Upgrades Neutral → Outperform 01/04/2024 3.78% Barclays $325 → $372 Upgrades Equal-Weight → Overweight 12/21/2023 7.96% Truist Securities $356 → $387 Maintains Buy 12/20/2023 -0.97% Stifel $306 → $355 Maintains Hold 12/08/2023 -0.69% Truist Securities $340 → $356 Maintains Buy 11/15/2023 -5.15% Guggenheim $360 → $340 Maintains Buy 11/15/2023 -16.59% RBC Capital $303 → $299 Maintains Sector Perform 11/15/2023 0.43% Oppenheimer → $360 Reiterates Outperform → Outperform 11/15/2023 -5.15% Truist Securities $341 → $340 Maintains Buy 11/15/2023 -6.55%

Telsey Advisory Group analyst Joseph Feldman maintains Home Depot (NYSE:HD) with a Market Perform and raises the price target from $325 to $335.

Despite lower housing turnover in December, the latest home sales report still has some positive signs for home-improvement retailers. DA Davidson analyst Michael Baker says in a research note that home prices are historically a more significant driver of sales than home turnover for retailers like Home Depot and Lowe’s. Home prices increased 4.4% from a year ago on average in December, the sixth-straight month of year-on-year increases and an acceleration on a year-over-year basis, according to DA Davidson. Firmer home prices will likely help those retailers’ sales. Baker says the report could be an early sign of nearing an inflection point for home-related stocks. Home Depot rises 0.8%, while Lowe’s gains 0.9%.

Home Depot (NYSE: HD) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/16/2024 12.17% Piper Sandler $311 → $400 Upgrades Neutral → Overweight 01/10/2024 6.56% Wedbush $330 → $380 Upgrades Neutral → Outperform 01/04/2024 4.32% Barclays $325 → $372 Upgrades Equal-Weight → Overweight 12/21/2023 8.52% Truist Securities $356 → $387 Maintains Buy 12/20/2023 -0.45% Stifel $306 → $355 Maintains Hold 12/08/2023 -0.17% Truist Securities $340 → $356 Maintains Buy 11/15/2023 -4.66% Guggenheim $360 → $340 Maintains Buy 11/15/2023 -16.15% RBC Capital $303 → $299 Maintains Sector Perform 11/15/2023 0.95% Oppenheimer → $360 Reiterates Outperform → Outperform 11/15/2023 -4.66% Truist Securities $341 → $340 Maintains Buy 11/15/2023 -6.06% Morgan Stanley $350 → $335 Maintains Overweight 11/15/2023 -8.86% Telsey Advisory Group → $325 Reiterates Market Perform → Market Perform 11/13/2023 -14.19% Stifel $350 → $306 Maintains Hold 11/07/2023 -15.03% RBC Capital → $303 Initiates

Home Depot (NYSE: HD) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/10/2024 8.73% Wedbush $330 → $380 Upgrades Neutral → Outperform 01/04/2024 6.44% Barclays $325 → $372 Upgrades Equal-Weight → Overweight 12/21/2023 10.73% Truist Securities $356 → $387 Maintains Buy 12/20/2023 1.58% Stifel $306 → $355 Maintains Hold 12/08/2023 1.86% Truist Securities $340 → $356 Maintains Buy 11/15/2023 -2.72% Guggenheim $360 → $340 Maintains Buy 11/15/2023 -14.45% RBC Capital $303 → $299 Maintains Sector Perform 11/15/2023 3.01% Oppenheimer → $360 Reiterates Outperform → Outperform 11/15/2023 -2.72% Truist Securities $341 → $340 Maintains Buy 11/15/2023 -4.15% Morgan Stanley $350 → $335 Maintains Overweight 11/15/2023 -7.01% Telsey Advisory Group → $325 Reiterates Market Perform → Market Perform 11/13/2023 -12.44% Stifel $350 → $306 Maintains Hold 11/07/2023 -13.3% RBC Capital → $303 Initiates Coverage On → Sector Perform 11/07/2023 -7.01% Telsey Advisory Group $330

Home Depot Inc (NYSE:HD) recently announced the launch of new smart home devices at CES 2024. The headwinds faced by the company in 2023 seem to be “bottoming or reversing,” which should lead to an increase in demand this year, according to Wedbush. The Home Depot Analyst: Seth Basham upgraded the rating for Home Depot from Neutral to Outperform, while raising the price target from $330 to $380. The Home Depot Thesis: The company is a prime beneficiary of the expected rise in home improvement spending, which is likely to grow by at least low single digits by the second half of 2024, Basham said in the upgrade note. “We expect HD’s Pro business segment to outperform DIY in a rebounding industry environment with healthy Pro and general employment, solid wage growth and homeowner spending power from continued home price appreciation,” the analyst wrote. “Further, HD’s building Complex Pro initiative should help it