Company Of The Day: Home Depot
What?
Home Depot (NYSE:HD) posted a stronger than expected set of Q2 2021 earnings with EPS standing at $4.53 up from $4.02 last year. However, same-store sales growth was underwhelming, rising by about 4.5% year-over-year, compared to a Street estimate of 5.4%. Gross margins also declined 80 bps year-over-year to 33.2%.
Why?
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- Home Depot Stock To See Little Movement Past Q2
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- Can Home Depot Stock Return To Pre-Inflation Shock Highs?
- Why Are Housing Stocks Outperforming?
- Why Has Home Depot’s Stock Fallen 10% Since The Beginning Of The Year?
The miss in same-store sales growth was driven partly by tough year-over-year comparisons, as customers doubled down on home improvement projects in Q2 2020. The margins decline was due to higher transport costs and supply chain issues.
So What?
Home Depot stock declined by about 4% in Tuesday’s trading following the report.
See Our Complete Analysis For Home Depot
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