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Home Depot (HD) is set to release its Q4 2024 earnings on Tuesday, February 25 before the opening bell. The stock’s Q4 performance will provide crucial insights into recent developments and highlights.
The report is expected to highlight continued growth in earnings per share, reflecting Home Depot’s resilience in a challenging retail environment. However, concerns about declining comparable store sales remain a key focus for investors. ⁽¹⁾
Source: TradingView
What To Focus On?
Home Depot has been displaying strong profitability consistently in 2024. These gains were supported by its management and leadership in the home improvement segment and strategic investments in technology which could help in digital and supply chain operations through its “One Home Depot” plan.
Focus will also be on ‘Do it yourself’ (DIY) customers and contractors as the company maintains a strong position for homeowners and industry experts. ⁽²⁾
Home Depot’s store operations, diverse product range, and expansion into e-commerce are expected to support consumer demands. The company is willing to strategize in improving web traffic and customer support, while its strengthening Pro (professional customers) segment gives Home Depot a competitive advantage against rivals like Lowe’s. ⁽³⁾
Home Depot is prioritizing employee engagement and improving delivery services. The recent acquisition of SRS Distribution has further strengthened its presence in building material distribution, improving services for professional contractors and tradespeople. ⁽⁴⁾
However, short-term challenges, including weaker consumer demand for high-quality items and macroeconomic pressures, suggest a cautious approach.
Market Expectations
Wall Street Estimates
- Earnings per Share (EPS): $3.03
- Revenue: $39.1 bn
Recently, Home Depot stock fell almost 6% as the inflation report showed higher than expected numbers, caused by a rise in housing costs. The data could impact the home improvement segment, as the stock is sensitive to interest rates and housing market fluctuations. ⁽⁵⁾
As the company faces challenges from external factors, Home Depot stock’s price has been raised by several analysts including some from JP Morgan and RBC, which indicates strong fundamentals that back the company’s position as a leader in the consumer discretionary sector. ⁽⁶⁾
Home Depot continues to benefit from its investments in technology and e-commerce in order to improve customer relationships and operations. The Pro segment remains an important indicator for growth. Additionally, its acquisition of SRS Distribution has boosted its presence in the building materials market, further strengthening its competitive edge. ⁽⁷⁾
Home Depot’s Q4 2024 earnings is highly anticipated by traders and investors, where its performance could weigh on its strong position in the retail sector. While the company may have long-term potential, patience is a must as any developments and comments could trigger volatility in the stock.
