Home Depot (HD) announced its 2024 Q2 financial results‼️

The 2024 Q2 financial results have been announced‼️
Recorded EPS and revenue that exceeded market expectations, but
Revised downward the full-year outlook 💦
Stock prices fell by 2.4% in after-hours trading 📉

🔸FY24 Q2 Performance
⭕️EPS: $4.67 (estimated +$0.12)
⭕️Revenue: $43.2 billion (estimated +$0.47 billion)
📈Revenue growth rate: +0.6% Y/Y

🔸FY24 Full Year Guidance (downward revision)
⭕️Revenue growth rate: +2.5% to +3.5% (previously +1%)
⭕️Existing store revenue: -3% to -4% (previously -1%)
EPS: -1% to -3% (previously +1%)

🔸Q2 Highlights
✔️Existing store revenue: -3.3% (-3.6% usa)
✔️Customer transaction volume: -1.8% year-on-year
✔️Average customer unit price: $88.90 (-1.3% year-on-year)
✔️Operating margin: 15.1% (-0.3 points year-on-year)

🔸Key factors
High gold interest rates and economic uncertainty depressing consumer demand
Delay in a large-scale residential renovation project.
Revenue contribution from the acquisition of SRS Distribution ($1.3 billion)

CEO Ted Decker's comment: "The long-term foundation supporting the demand for home improvement is strong, but the rising high interest rates and macroeconomic uncertainties are putting pressure on overall consumer demand, leading to a weakening of spending on home improvement projects."

🔸Future prospects
SRS is expected to contribute to an increase in revenue of approximately $6.4 billion for the full year.
Planning to open 12 new stores.

🔸Market Environment
Downturn in the housing market due to high home loan interest rates.
Decrease in sales of new and used residences
0.4% decrease in visitor numbers in July (4.3% increase in June)

🔸AI analysis🤖
📊Home Depot's earnings reflect the harsh macroeconomic environment. High interest rates and economic uncertainty are suppressing consumption, leading to delays in large projects.
💡The acquisition of SRS Distribution strengthens the long-term growth foundation. Long-term trends such as deterioration of housing stock and increased time spent at home remain favorable.
🔍Investors should pay attention to interest rate trends and consumer confidence. The company's cost management capability and progress in digital strategy are also crucial. While a cautious outlook is needed in the short term, the long-term growth story is considered attractive.

🔸Company Overview
Home Depot is the world's largest home improvement stores chain, providing services to a wide range of customers from DIY enthusiasts to professional contractors. They sell home improvement products and construction materials, primarily operating in North America.