Home improvement retailer Home Depot Inc
EPS of $2.82 beat the analyst consensus of $2.77. The stock price declined after the results.
Customer transactions for the quarter fell 1.7%. Comparable sales decreased 3.5%, and comparable sales in the U.S. dropped 4.0%.
Gross profit fell 3.5% Y/Y to $11.5 billion. The operating margin was 11.9%, and operating income for the quarter plunged 12.8% to $4.1 billion.
The operating expenses increased 2.7% Y/Y to $7.4 billion.
The average ticket was $88.87, a 1.3% decrease, and sales per retail square foot declined 3.6% to $550.50.
Home Depot held $3.76 billion in cash and equivalents as of January 28, 2024. Operating cash flow for the fiscal year ended January 28, 2024 totaled $21.2 billion.
Dividend: The board of directors approved a 7.7% increase in its quarterly dividend to $2.25 per share, which equates to an annual dividend of $9.00 per share.
2024 Outlook: Home Depot expects total sales growth of approximately 1.0% or $154.2 billion versus $155.0 billion consensus and comparable sales decline of approximately 1.0%.
It expects EPS growth of approximately 1.0% or $15.26 versus $15.61 consensus.
Will Home Depot Stock Go Up?
When trying to assess whether or not Home Depot will trade higher from current levels, it's a good idea to take a look at analyst forecasts.
Wall Street analysts have an average 12-month price target of $374.0 on Home Depot. The Street high target is currently at $400.0 and the Street low target is $335.0. Of all the analysts covering Home Depot, 8 have positive ratings, 3 have neutral ratings and no one has negative ratings.
Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Home Depot is 19.8% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.
Price Action: HD shares traded lower by 2.03% at $354.99 premarket on the last check Tuesday.
