Home Depot's Muted Outlook Could Indicate A Muted Macroeconomic Year Lies Ahead
Portfolio Pulse from Upwallstreet
Home Depot (HD) reported its 11th consecutive quarterly decline with sales dropping to $34.79 billion, yet surpassing estimates. The company faces challenges from a post-pandemic slowdown, inflation, and high borrowing costs, leading to a guidance of a 1% decline in 2024 sales. Lowe's (LOW) is also expected to report a drop in Q4 revenue and a year-over-year decrease in its bottom line, affected by DIY segment softness, e-commerce challenges, lumber deflation, and competition. Both companies' outlooks may signal a weakening macroeconomic climate ahead.
February 26, 2024 | 4:01 pm
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NEGATIVE IMPACT
Home Depot reported a decline in Q4 sales to $34.79 billion but exceeded estimates. The company anticipates a 1% sales decline in 2024, facing challenges from inflation and high borrowing costs.
Home Depot's guidance for a 1% decline in 2024 sales, despite beating Q4 estimates, reflects ongoing challenges in the macroeconomic environment, which could negatively impact investor sentiment and the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Lowe's is expected to report a decrease in Q4 revenue and a year-over-year bottom line decrease, impacted by DIY segment softness, e-commerce challenges, lumber deflation, and competition.
The expected report of a decrease in Q4 revenue and a year-over-year bottom line decrease for Lowe's, along with challenges in the DIY segment and competition, suggests potential negative short-term impacts on its stock price.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90