HOME DEPOT Reports Q2 FY2024 Earnings Results on August 15, 2023
August 23, 2023
🌥️Earnings Overview
On August 15, HOME DEPOT ($NYSE:HD) released their earnings report for the quarter ending July 31, 2023. Total revenue for the quarter was USD 42.9 billion, a decrease of 2.0% year-over-year. Net income was USD 4.7 billion, a 9.9% drop compared to the same period in FY2024.
Stock Price
On Tuesday, August 15, 2023, HOME DEPOT reported its Q2 FY2024 earnings results, sending their stock up 0.7% from the previous day’s closing price of $330.0. On that day, the stock opened at $331.8 and closed at $332.1, providing a solid boost to the company’s revenues and profits. This was primarily driven by strong sales in their major departments such as home improvement, tools, building materials, gardening, and appliances. Apart from their financial performance, HOME DEPOT also shared a positive outlook for the rest of the year.
The company also plans to invest heavily in their digital capabilities, such as mobile shopping and delivery services, to increase customer satisfaction and drive revenue growth. Overall, HOME DEPOT reported strong performance in the second quarter of FY2024 and provided an optimistic outlook for the rest of the year. With their continued investments in digital capabilities and store expansion, they have positioned themselves well for future success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Home Depot. More…
| Total Revenues | Net Income | Net Margin |
| 154.88k | 16.23k | 10.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Home Depot. More…
| Operations | Investing | Financing |
| 19.64k | -3.58k | -14.46k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Home Depot. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 76.39k | 75.05k | 0.36 |
Key Ratios Snapshot
Some of the financial key ratios for Home Depot are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.1% | 11.3% | 15.0% |
| FCF Margin | ROE | ROA |
| 10.5% | 3999.3% | 19.0% |
Analysis
GoodWhale has conducted an analysis of Home Depot‘s financials and, based on the Star Chart, classified it as a ‘Rhino’ – a company that has achieved moderate revenue or earnings growth. This type of company may be attractive to investors who are looking for steady returns. Home Depot’s strengths include its dividend payments, strong profitability, and medium growth rate, while its weakness is its asset base. Additionally, it is in good health with a score of 8/10 in regards to its cashflows and debt capacity, indicating it is capable of paying off existing debt and funding future operations. More…
Peers
The Home Depot Inc is one of the leading home improvement retailers in the United States. The company operates more than 2,200 stores across the country. Lowe’s Companies Inc is another leading home improvement retailer in the United States. The company operates more than 1,700 stores across the country. Floor & Decor Holdings Inc is a leading specialty retailer of hard surface flooring in the United States. The company operates more than 100 stores across the country. Wayfair Inc is a leading online retailer of home furnishings and home décor products.
– Lowe’s Companies Inc ($NYSE:LOW)
Lowe’s Companies, Inc. is a home improvement company that operates stores in the United States, Canada, and Mexico. The company offers a wide variety of home improvement products, including appliances, tools, hardware, flooring, and more. Lowe’s is also involved in home improvement services, such as installation, repair, and remodeling. The company has a market cap of $114.17B and a return on equity of -99.39%.
– Floor & Decor Holdings Inc ($NYSE:FND)
Floor & Decor Holdings Inc is a specialty retailer of hard surface flooring and related accessories, with 97 stores across 27 states in the United States. The company offers a wide selection of ceramic tile, porcelain tile, natural stone, wood flooring, laminate, and vinyl flooring products. It also provides installation services for customers who purchase their products. Floor & Decor Holdings Inc has a market cap of 7.06B as of 2022, a Return on Equity of 14.88%.
– Wayfair Inc ($NYSE:W)
As of 2022, Wayfair Inc has a market cap of 3.37B and a Return on Equity of 29.2%. The company provides an online platform for home goods and furniture retailers. It operates through two segments, Direct and Marketplace. The Direct segment offers products through its own website. The Marketplace segment offers products through third-party websites.
Summary
Investors should take a closer look at the second-quarter earnings report from Home Depot. Total revenue declined 2.0% year-over-year to $42.9 billion, while net income decreased 9.9% from the same period in the previous year. Despite these declines, Home Depot managed to outperform expectations and posted a gain in same-store sales.
Moving forward, the company is looking to invest in new initiatives to drive sales, such as expanding their online presence and offering more delivery services. Despite the current challenges in the retail market, Home Depot is optimistic about their future prospects and potential growth opportunities.
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