Weather Boosts Home Depot's Sales

Home Depot reported its fiscal third-quarter results on November 12, 2024, surpassing Wall Street expectations and raising its full-year outlook. The company achieved a net income of $3.6 billion, or $3.67 per share, slightly down from $3.8 billion, or $3.81 per share, in the same period last year. Adjusted earnings per share were $3.78, exceeding the $3.65 anticipated by analysts.

Revenue for the quarter rose 6.6% to $40.2 billion, outperforming the expected $39.31 billion. Same-store sales declined by 1.3%, a smaller drop than the 3.1% analysts had projected.

CEO Ted Decker noted that, despite ongoing macroeconomic uncertainties, the company's performance exceeded expectations. He attributed this to improved engagement in seasonal goods and outdoor projects, as well as increased sales related to hurricane demand.

Home Depot raised its full-year guidance, now expecting sales growth of about 4%, up from the previous forecast of 2.5% to 3.5%. The company also anticipates a smaller decline in earnings per share, projecting a 2% decrease compared to the earlier outlook of a 2% to 4% drop.

Despite these positive results, Home Depot's stock experienced a slight decline, as management acknowledged that the home-improvement market has not fully stabilized. Persistent high mortgage rates and consumer caution regarding high-interest credit are impacting discretionary remodeling projects.

Analysts are debating whether 2025 will see significant topline growth for Home Depot, considering the current economic conditions and consumer behavior trends.