On 12 November, the world’s largest home improvement retailer Home Depot (HD:NYSE) will report third-quarter earnings. Year-to-date, shares in this US consumer bellwether have underperformed the S&P 500 with a rough 15% gain.

Shares believes Home Depot will need to at least meet the $39.2 billion in quarterly revenue and EPS (earnings per share) of $3.63 Wall Street which expects for upwards stock price momentum to resume following a recent pullback.

Investors will be eager to see if September’s jumbo rate cut by the Federal Reserve has begun to thaw out the US housing market and stimulate home improvement demand, or whether US election uncertainty has continued to weigh on big-ticket spending.

In August, Home Depot announced a disappointing 3.3% comparable sales decrease for the second quarter, with US comparable sales down 3.6%.

The retail giant also warned full-year comparable sales would fall 3% to 4% this year, a downgrade on previous expectations of a dip of around 1%.

The DIY giant explained that due to higher interest rates and greater macroeconomic uncertainty, consumers were increasingly reluctant to start big home improvement projects like kitchen or bathroom remodeling, although chief executive Ted Decker stressed ‘the underlying long-term fundamentals supporting home improvement demand are strong’.

When Home Depot reports, analysts will be keen for an update on the progress being made with SRS Distribution, a recently acquired building products supplier which has expanded the company’s reach among professional builders and contractors. 

US UPDATES OVER THE NEXT 7 DAYS

QUARTERLY RESULTS

8 Nov: Constellation Software, Baxter, Paramount Global, Ricoh, Fluor, KT, Flower Foods, NexGen Energy, Alpha Bank, Global Partners, Docebo, Bloomin Brands, ANI Pharma, Sky Harbour, Koppers

12 Nov: Home Depot, Occidental, Live Nation Entertainment, Tyson Foods, Skyworks, Mosaic

13 Nov: Cisco, Copart

14 Nov: Walt Disney, Applied Materials, Palo Alto Networks, Ross Stores

‹ Previous2024-11-07Next ›