HOME DEPOT Reports Third Quarter FY2024 Earnings Results on October 31, 2023
November 27, 2023
🌥️Earnings Overview
On October 31, 2023, HOME DEPOT ($NYSE:HD) revealed its financial results for the 3rd quarter of FY2024, which ended on November 14, 2023. The total revenue for the quarter was reported as USD 37.7 billion, a decrease of 3.0% compared to the same period in the previous year. Net income was reported as USD 3.8 billion, representing a drop of 12.2% from the year before.
Share Price
On Tuesday, October 31, 2023, HOME DEPOT released their third quarter Fiscal Year 2024 earnings results. This news caused the stock to open at a price of $300.9 and eventually close at $303.6, a rise of 5.4% from the last closing price of 288.1. This increase in price illustrates the confidence investors have in HOME DEPOT’s ability to continue to grow their revenue and profits for the upcoming year. This is a particularly impressive result given the current state of the economy and the fact that many other businesses in the home improvement industry are experiencing a decrease in sales due to the pandemic.
Overall, HOME DEPOT’s third quarter earning results indicate that the company is in a very strong financial position, and investors are optimistic about its future prospects. Going forward, the company should continue to focus on expanding its existing product lines and services, while also exploring new markets and opportunities for growth. 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 |
| 153.71k | 15.7k | 10.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Home Depot. More…
| Operations | Investing | Financing |
| 21.03k | -4.04k | -17.37k |
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 |
| 75.58k | 74.15k | 1.33 |
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 |
| 7.0% | 8.2% | 14.6% |
| FCF Margin | ROE | ROA |
| 11.6% | 1051.7% | 18.6% |
Analysis
At GoodWhale, we conducted an analysis of HOME DEPOT‘s wellbeing. Based on our Star Chart, HOME DEPOT is strong in dividend and profitability, and medium in growth and weak in asset. HOME DEPOT has a high health score of 8/10 with regard to its cashflows and debt, showing that it is capable to safely ride out any crisis without the risk of bankruptcy. We classify this company as a ‘rhino’, meaning that it has achieved moderate revenue or earnings growth. Due to its strong dividend and profitability, HOME DEPOT may be of interest to investors looking for a steady income. Additionally, its high health score indicates that the company is more likely to withstand economic downturns. Investors who are looking for a relatively stable and secure company can thus consider investing in HOME DEPOT. 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 were pleased with HOME DEPOT‘s third quarter earnings report for FY2024, noting the company’s total revenue of USD 37.7 billion and net income of USD 3.8 billion. Despite a 3.0% decrease in total revenue compared to the same period last year, and a 12.2% drop in net income, HOME DEPOT’s stock price moved up on October 31, 2023. This suggests that investors view HOME DEPOT as a safe long-term investment despite its short-term financial performance. Home Depot’s focus on improving customer experience, expanding into new markets, and increasing efficiency measures should help it post strong returns for investors in the near future.
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