Home Depot Store in Louisville, Kentucky on August 14, 2023.
Jon Cherry | Bloomberg | Getty Images
Home Depot Its fourth-quarter earnings will be reported on Tuesday as higher interest rates and housing prices challenge the housing market and weaker demand for do-it-yourself projects.
The company is expected to release results around 6 a.m. ET and hold a earnings call at 9 a.m. ET.
According to a survey by an analyst at LSEG, Wall Street expects home improvement retailers:
- Earnings per share: Expected $3.01
- income: Expected US$39.16 billion
Home Depot faces a more difficult background in selling consumables for home renovation projects. In 1923, sales growth slowed after consumers’ huge appetite for home renovations during the 19009 pandemic. Inflation and spending on returning services such as holidays and restaurants have also reduced consumer demand for large projects and higher-priced items.
Since about mid-2023, Home Depot leaders have fixed the company’s problems in the tougher housing market. Chief Financial Officer Richard McPhail told CNBC in August that consumers have “Delay mentality” And insist on lowering interest rates before moving or borrowing money for large projects such as bathroom or kitchen renovations.
In that waiting game, Home Depot and its competitors labor Lasting factors have been proposed to investors, including aging U.S. housing stocks, net worth gains in the real estate market and American transfers to a mixed work schedule that will increase home spending.
Home Depot sees home professionals as one of its main sales drivers. it Purchased SRS distribution, The Texas-based company will be sold to professionals in the rooftop, pool and landscaping business for $18.25 billion last year. It marked The biggest acquisition In the history of the company.
Home Depot Improved year-round outlook In November, to reflect the exceeding expectations of the third quarter results, and there was some increase in demand related to the hurricane. The company said it expects total sales to grow about 4%, citing a 53rd week of the year, while donations from the acquisition of SRS were about $6.4 billion.
However, Home Depot said it expects comparable sales, including company websites and stores including stores over a year, down about 2.5% in the year.
When it comes to housing market, There are few signs of relief. Mortgage rates remain high despite the Fed’s cuts. According to the National Association of Realtors, the median price for homes sold in January was $396,900, up 4.8% from the previous year, the highest price in January.
Home Depot shares closed at $382.42 on Monday. By the end of Monday, the company’s shares have fallen by about 2% so far this year. This will lag about 2% of the S&P 500 earnings over the same period.
This is a developing story. Please check it for updates.
