Home Depot FY24 Outlook: Sales Growth +1% Vs. $152.53B Estimate, Comparable Sales Growth -1%,
Portfolio Pulse from Benzinga Newsdesk
Home Depot forecasts a 1% sales growth for FY24, including benefits from an extra operating week, with comparable sales expected to decline by 1%. The company plans to open 12 new stores and projects a gross margin of 33.9%, operating margin of 14.1%, and a tax rate of 24.5%. Net interest expense is anticipated to be around $1.8 billion, with the 53rd week contributing approximately $0.30 to diluted EPS, leading to a 1% growth in 53-week diluted EPS.
February 20, 2024 | 11:03 am
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NEUTRAL IMPACT
Home Depot expects a 1% sales growth in FY24, including a $2.3 billion boost from an extra week, despite a 1% drop in comparable sales. The company also anticipates opening 12 new stores, maintaining a gross margin of 33.9%, and achieving a 1% growth in 53-week diluted EPS.
The mixed outlook with a slight overall sales growth, a decline in comparable sales, and stable margins suggests a neutral short-term impact on Home Depot's stock. The additional week's positive contribution to sales and EPS is balanced by the expected decline in comparable sales.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100