April 18, 2024

TechNewsInsight

Technology/Tech News – Get all the latest news on Technology, Gadgets with reviews, prices, features, highlights and specificatio

Home Depot (HD) Q4 2023 Earnings

Home Depot (HD) Q4 2023 Earnings

In a call with CNBC, Chief Financial Officer Richard McPhail said demand declined throughout the year as consumers returned to more typical spending patterns. He added that lower lumber prices and higher interest rates have hurt business.

Home Depot now sees an opportunity to return to growth, McPhail said.

“Our market is on the way back to normal demand conditions,” he said. “We are not there yet, but the pressures we saw in 2023 are easing.”

Here's what the company is Reported within the three-month period Ended on January 28 compared to what Wall Street expected, based on a poll of analysts conducted by LSEG, formerly Refinitiv:

  • EPS: $2.82 vs. $2.77 expected
  • Revenues: $34.79 billion versus $34.64 billion expected

Home Depot shares fell more than 3% in premarket trading.

Net income for the fiscal fourth quarter fell to $2.80 billion, or $2.82 per share, from $3.36 billion, or $3.30 per share, a year earlier.

Net sales It decreased from $35.83 billion in the same period last year.

Home Depot has faced a tougher sales backdrop over the past year. The home improvement retailer follows a period of more than two years when Americans had more time and money to spend on painting and repairing their homes during the Covid-19 pandemic.

The company also felt a decline in consumer spending, especially on big-ticket items, as some families postponed discretionary purchases due to inflation, postponed the purchase of a new home due to rising interest rates or chose to spend on experiences rather than goods.

Throughout the past year, MacPhail and CEO Ted Decker have described 2023 as a “year of moderation” after huge gains during the pandemic.

See also  Amazon is facing a landmark antitrust lawsuit from the Federal Trade Commission (FTC).

On Tuesday, McPhail said clients were still putting off larger projects — especially large-scale projects that might require a loan — because of high borrowing costs.

However, he said sales throughout the fourth quarter were largely flat, except for a decline in January due to cold and wet weather. He said that the temporary decline did not affect the company's expectations for next year.

Average ticket and customer transactions decreased in the fourth quarter compared to the same period last year. The average ticket price fell to $88.87 from $90.05 in the same quarter last year, reflecting a more typical pricing environment, McPhail said.

As of Friday's close, Home Depot shares were up nearly 5% this year. This roughly matches the S&P 500's gains over the same period. The company's shares closed at $362.35 on Friday, bringing Home Depot's market value to about $360 billion.

This story is evolving. . Please check back for updates