Home Depot

Home Depot announced its Q2 FY24 (April-July) results with the following key points:

- Revenue reached $43.2 billion, up 0.7% year-over-year, surpassing the consensus estimate by $490 million.

- Non-GAAP EPS was $4.67, down 0.2% year-over-year, but exceeded the consensus by $0.12.

- Despite these results, the stock is down 3.13% in pre-market trading.

Same-store sales decreased by 3.3% compared to the same period last year, with U.S. sales specifically down by 3.6%. The number of transactions fell by 1.8% to 451 million, and the average transaction value decreased by 1.3% to $88.90.

Management raised its full-year FY24 revenue growth guidance from +1% to +2.5-3.5%, but lowered its EPS growth guidance to -3% to -1%. Wall Street consensus estimates are +1.8% for revenue growth and +0.4% for EPS growth, making the EPS outlook appear negative.

Additionally, the same-store sales growth guidance was revised down from -1% to a range of -4% to -3%, falling short of the consensus estimate of -1.7%. This decline in same-store sales is attributed to weakened consumer sentiment.