Market Commentary

Home Depot’s Q2 Results Beat Expectations

Raza Akram
6 Feb 2024 · 1 minute read

Home Depot (HD:US) reported second-quarter earnings on Tuesday. The company also provided reaffirmed guidance and said its Board authorized a $15 billion share repurchase plan.

The Atlanta-headquartered firm reported net income of $4.66 billion, translating to earnings of $4.65 per share for the quarter. This marked a decline from the $5.17 billion in net income, or $5.05 per share, reported in the same period last year. 

Sales also experienced a downturn, amounting to $42.90 billion compared to $43.79 billion in the prior year. The consensus predicted earnings per share of $4.45 and sales of $42.19 billion.

Same-store sales showed a 2% decrease, surpassing the consensus that anticipated a larger 4.5% decline.

“While there was strength in categories associated with smaller projects, we did see continued pressure in certain big-ticket, discretionary categories,” CEO Ted Decker said in a statement. “We remain very positive on the medium-to-long term outlook for home improvement and our ability to grow share in a large and fragmented market.”

Home Depot reaffirmed its full-year guidance, projecting a 2% decline in sales, a 5% decrease in same-store sales, and an earnings-per-share decline ranging between 7% to 13%.

Year-to-date, the company's stock has gained around 4.5%, underperforming the broader market. HD shares were seen trading modestly lower in the aftermath of the Q2 earnings report release.

Back in June, Representative Ro Khanna disclosed he sold between $100,000 and $250,000 worth of HD shares in late May.