Home Depot (HD) posted mixed results for its second quarter earnings, reporting a revenue of $43.18 billion against an expected $43.79 billion but an adjusted earnings of $4.67 per share against an expected $4.52 per share. The company cut its full-year outlook, expecting sales to decline between 3 and 4%, but will things turn around?
Zelman Associates Managing Director Adam Baumgarten joins Catalysts to give insight into Home Depot’s latest quarterly results and what it signals for the broader housing market.
Looking at Home Depot’s numbers, Baumgarten states: "I think you’ve been seeing a normalization in home improvement spending in general. So there was the huge surge as you know, in ’20 and ’21 and we’ve been giving back some of those gains. Part of that is the shift in share of wallet from goods to services. And I think even within goods you saw a surge in home improvement."
He follows that up with: "We think that is back to somewhat normal as a percentage of overall consumer spending by the end of this year. So that’s why we think next year you do return to growth for comps… But any kind of recession, which is not built into our forecast could push that out a bit more. Also, I think there was a bit more optimism earlier in the year as there was more of an outlook for rates coming down earlier in the year, and now that’s been pushed out as we all know."
#youtube #news #HomeDepot
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
– Get the latest news and data at finance.yahoo.com
– Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)
– Follow Yahoo Finance on social:
X: http://twitter.com/YahooFinance
Instagram: https://www.instagram.com/yahoofinance/?hl=en
TikTok: https://www.tiktok.com/@yahoofinance?lang=en
Facebook: https://www.facebook.com/yahoofinance/
LinkedIn: https://www.linkedin.com/company/yahoo-finance
