Home Depot Earnings: HD Stock Dips 1% on Cautious Q3 Outlook

Home Depot (NYSE:HD) earnings for the home improvement retailer’s second quarter of 2020 have HD stock dipping lower on Tuesday. That drop comes even after reporting diluted earnings per share of $4.02, which is better than Wall Street’s estimate of $3.71. Its revenue of $38.05 billion also beats out analysts’ estimates of $34.53 million.

Home Depot (HD) storefront on a sunny day
Source: Jonathan Weiss / Shutterstock.com

Here’s what else is worth mentioning from the most recent Home Depot earnings report.

  • Diluted per-share earnings are up 26.8% from $3.17 in the same period of the year prior.
  • Revenue for the quarter is sitting 23.4% higher than the $30.84 million reported in Q2 2019.
  • Operating income of $6.07 billion is a 23.9% increase year-over-year from $4.9 billion.
  • The Home Depot earnings also have it reporting a net income of $4.33 billion.
  • That’s a 24.5% jump from the company’s net income of $3.48 billion from the same time last year.

Craig Menear, chairman, president and CEO of Home Depot, said this in the earnings report.

“We remain focused on continuing the momentum of our One Home Depot investment strategy that we believe will position us for continued growth over the long-term, while at the same time maintaining flexibility to navigate the demands of the current environment.”

Home Depot’s conference call wasn’t as helpful to HD stock. The company is taking a more cautious stance for the third quarter of the year. It warns investors that the strong momentum seen in Q2 may not continue into the next quarter.

HD stock was down close to 1% as of Tuesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/08/home-depot-earnings-outlook-dips-hd-stock/.

©2020 InvestorPlace Media, LLC