Investment Rating - The report maintains a "Buy" rating for the company [2][9]. Core Insights - Demand recovery is expected following the stabilization of loan rates, leading to an upward revision of the full-year guidance [2][9]. - In Q3 2024, the company's total sales reached $40.2 billion, a year-on-year increase of 6.6%, primarily due to the acquisition of SRS and an additional 53rd week of operations [5][7]. - Comparable sales decreased by 1.3% year-on-year, with October showing a positive growth of 1%, attributed to hurricane-related demand [5][7]. - The company anticipates total sales growth of approximately 4% for 2024, up from a previous guidance of 2.5%-3.5% [9]. Summary by Sections Market Data - Closing price: $405.72 - Total shares outstanding: 993 million - Total market capitalization: $403 billion - Total assets: $97.3 billion - Net assets attributable to shareholders: $5.79 billion [3]. Financial Performance - Q3 2024 gross margin was approximately 33.4%, a decline of about 40 basis points year-on-year [8]. - Operating profit margin for Q3 2024 was 13.5%, down 0.8 percentage points year-on-year [8]. - Net profit for Q3 2024 was $3.6 billion, a year-on-year decrease of 4.3% [8]. - Inventory at the end of Q3 2024 was $23.9 billion, an increase of $1.1 billion year-on-year, with an inventory turnover rate of 4.8 times, up from 4.3 times in Q3 2023 [8]. Future Guidance - The company expects comparable sales to decline by approximately 2.5% in 2024, an improvement from the previous guidance of a 3%-4% decline [9]. - Projected revenues for 2024-2026 are $158.2 billion, $163.6 billion, and $171.1 billion, with year-on-year growth rates of +3.7%, +3.4%, and +4.6% respectively [9]. - Projected net profits for the same period are $14.9 billion, $15.4 billion, and $16.7 billion, with year-on-year changes of -1.9%, +3.8%, and +8.0% respectively [9].

The company looks well positioned to rebound next year.From an operational standpoint, Home Depot (HD 0.61%) has been dealing with a difficult environment for the past few years. Same-store sales have declined consistently since the end of 2022. Despite that, the stock has held up well, and is up by around 40% over the past year as of this writing.In its fiscal third quarter, which ended Oct. 27, same-store sales declined again. However, the decline was smaller than expected, and it looks like the company c ...

Core Insights - Home Depot's acquisition of SRS Distribution for $18.25 billion marks a strategic shift towards catering to professional contractors and expanding its market presence beyond traditional retail [3][10][12] - The deal is expected to enhance Home Depot's sales, contributing approximately $6.4 billion in incremental sales this year, despite a challenging home improvement market [17][4] - Home Depot aims to leverage SRS's specialized product offerings and logistics capabilities to strengthen its position in the professional market [18][20] Company Strategy - Home Depot's acquisition of SRS is part of a broader strategy to increase sales to professional contractors, which currently account for about 50% of its business compared to 20%-25% at competitors like Lowe's [14][15] - The acquisition is seen as an opportunity to enter a new market with an established player, potentially accelerating growth in the professional segment [9][10] - Home Depot plans to maintain its focus on do-it-yourself sales while integrating SRS's operations to enhance overall business performance [17][22] Market Impact - The acquisition is projected to expand Home Depot's total addressable market by approximately $50 billion, bringing it to around $1 trillion [8] - SRS's established logistics network and dedicated sales force are expected to improve delivery efficiency and customer service for professional clients [18][20] - The deal comes at a time when housing turnover is low, but Home Depot is optimistic about future growth as interest rates decline [11][14] Operational Synergies - Home Depot is beginning to see synergies from the acquisition, including the integration of SRS's logistics capabilities with its own distribution network [18][21] - SRS's specialized sales force and product catalog are anticipated to enhance Home Depot's offerings to professional customers [20][19] - The collaboration aims to utilize Home Depot's existing infrastructure to support SRS's growth while allowing SRS to operate independently [22][23]

Home Depot sign over entrance, Palm Beach Gardens, Florida. (Photo by: Lindsey ... [+] Nicholson/UCG/Universal Images Group via Getty Images)UCG/Universal Images Group via Getty ImagesNote: Home Depot FY’23 ended on January 28, 2024.Home Depot stock (NYSE: HD), the world’s largest home improvement retailer, fell marginally 1.3% on Tuesday, 12th November (to $403), as compared to a 0.3% decline in the S&P 500 index. In comparison, HD’s peer Lowe’s (NYSE: LOW) saw its stock down 1.7% to around $270 on the sam ...

The 2024 Q3 earnings season is slowly winding down, with just a small chunk of S&P 500 members yet to reveal their quarterly results. The period has so far been positive, with earnings growth remaining positive on the back of a strong showing from Technology yet again.Below is a chart illustrating the overall earnings picture on a quarterly basis.Image Source: Zacks Investment ResearchStay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Recently, we heard from home improvement giant Home ...

ATLANTA, Nov. 14, 2024 /PRNewswire/ -- The Home Depot®, the world's largest home improvement retailer, today announced that its board of directors declared a third-quarter cash dividend of $2.25 per share. The dividend is payable on December 12, 2024, to shareholders of record on the close of business on November 27, 2024. This is the 151st consecutive quarter the company has paid a cash dividend.The Home Depot is the world's largest home improvement specialty retailer. At the end of the third quarter, the ...

Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>Here are the key points:Total Q3 earnings for the 458 S&P 500 members that have reported results through Wednesday, November 13th, are up +6.9% on +5.4% higher revenues, with 73.6% beating EPS estimates and 61.4% beating revenue estimates. The earnings and revenue growth pace for this group ...

Home Depot Inc HD released its third-quarter earnings report Tuesday, posting revenue and EPS beats, aided by recent bouts of extreme weather. Analysts are still bullish on the Atlanta, Georgia-based company.Home Depot Analysts: The following analysts published notes on Tuesday:Goldman Sachs analyst Kate McShane reiterated a Buy rating for Home Depot, raising its price target from $384 to $410.J.P. Morgan analyst Christopher Horvers reiterated an Overweight rating for Home Depot, raising its price target fr ...

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or ...

Home Depot said retail theft continues to be a challenge.CFO Richard McPhail said the operating environment is "getting harder and harder."However, the executive said investments to combat shoplifting and organized theft "are paying off." Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Go to newsletter preferences Thanks for signing up! Access your favorite topics in a personalized feed while you're on ...