Home Depot Sends A Clear Consumer Health Warning
Portfolio Pulse from Upwallstreet
Home Depot (HD) reported fiscal Q2 earnings and sales that topped estimates but warned of declining annual profit and comparable sales due to weak discretionary spending. Revenue rose to $43.18 billion, but net income fell to $4.56 billion. Comparable sales dropped 3.3%, marking the seventh consecutive quarter of negative comparable sales. Home Depot expects annual comparable sales to drop 3-4% YoY and diluted profit per share to drop 2-4%. The SRS Distribution deal is expected to boost annual sales by $6.4 billion. Investors are now looking to Walmart (WMT) and Target (TGT) for further consumer health insights.
August 14, 2024 | 2:35 pm
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
Investors are looking to Target's upcoming earnings report for further insights into consumer health following Home Depot's warning of weak discretionary spending.
Target's upcoming earnings report is being closely watched for further insights into consumer health, but the direct impact on its stock price is uncertain until the report is released.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEUTRAL IMPACT
Investors are looking to Walmart's upcoming earnings report for further insights into consumer health following Home Depot's warning of weak discretionary spending.
Walmart's upcoming earnings report is being closely watched for further insights into consumer health, but the direct impact on its stock price is uncertain until the report is released.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Home Depot reported Q2 earnings and sales that beat estimates but warned of declining annual profit and comparable sales due to weak discretionary spending. Revenue rose to $43.18 billion, but net income fell to $4.56 billion. Comparable sales dropped 3.3%, marking the seventh consecutive quarter of negative comparable sales.
Despite beating earnings estimates, Home Depot's warning of declining annual profit and comparable sales due to weak discretionary spending is likely to negatively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100