Home Depot (HD), the world’s largest home improvement retailer, has released its third-quarter Fiscal 2024 results, showcasing a solid performance despite the ongoing macroeconomic uncertainty. With total sales hitting $40.2 billion, an impressive 6.6% increase from last year, the company surpassed analysts’ forecasts of $39.31 billion. However, it faced some challenges, including a slight 1.3% drop in comparable sales. Ted Decker, Home Depot’s CEO, commented, “Our third-quarter performance exceeded our expectations,” highlighting better engagement with seasonal products and outdoor projects.
HD Earnings Per Share Fall Slightly
The company’s net earnings for the quarter totaled $3.6 billion, or $3.67 per diluted share, which was a slight decline compared to $3.8 billion, or $3.81 per diluted share, from the same period last year. Adjusted EPS for Q3 2024 was $3.78, down from $3.85 in Q3 2023, beating analysts’ consensus estimate of $3.65. Despite this, the company remains on track with strong performance, buoyed by incremental sales related to hurricane demand and favorable weather conditions.
HD Updates Guidance for Fiscal 2024
Looking ahead, Home Depot updated its Fiscal 2024 guidance, forecasting total sales to rise by about 4%, including the impact of the 53rd week. However, comparable sales are expected to decline by approximately 2.5%. The company also anticipates adjusted diluted earnings per share for the year to fall by around 1% compared to last year, partly due to the extra week in the 2024 leap year.
Is Home Depot Stock a Good Buy?
Analysts remain bullish about HD stock, with a Strong Buy consensus rating based on 22 Buys and four Holds. Year-to-date, HD has increased by more than 20%, and the average HD price target of $429.08 implies an upside potential of 5% from current levels. These analyst ratings are likely to change following HD’s results today.
