The Home Depot (NYSE:HD) announced mixed results for the first quarter. The home improvement retailer posted net sales of $36.4 billion, a decline of 2.3% year-over-year, falling short of consensus estimates of $36.6 billion. Comparable sales also fell by 2.8% in the first quarter.
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The retailer reported first-quarter earnings of $3.63 per diluted share, compared to $3.82 per diluted share in the same period the previous year, exceeding Street estimates of $3.60 per share. The company’s management stated that the first quarter was affected by the delayed start to spring and softness in some large discretionary projects.
HD Reffirms FY24 Guidance
The company reaffirmed its FY24 guidance, expecting total sales to grow by around 1% year-over-year, while comparable sales are likely to decline by around 1%. Home Depot has projected an FY24 gross margin of around 33.9%, with earnings expected to rise by 1% year-over-year.
Is HD a Buy, Sell, or Hold?
Analysts remain cautiously optimistic about HD stock, with a Moderate Buy consensus rating based on 19 Buys, five Holds, and two Sells. Over the past year, HD has increased by more than 20%, and the average HD price target of $385.83 implies an upside potential of 13.2% from current levels. These analyst ratings are likely to change following HD’s Q1 results today.
