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Home Depot earnings topped estimates in Q3

Miguel A. Rodriguez
Miguel A. Rodriguez
18 Noiembrie 2020
Home Depot is making pandemic benefits permanent wage increases

The largest American home improvement retailer – Home Depot reported Q3 2020 earnings that topped estimates.

In Q3, Home Depot reported a net income of $3.43 billion, the figures being 24% higher than those posted during Q3 2019. The actual figures also topped the $3.06 billion expected. At the same time, the revenues came in at $33.54 billion, ahead of the $32.04 billion forecasted.

Home Depot had an EPS of $3.18; the market was looking for $3.06. Due to the pandemic, people preferred online shopping, digital sales rising 80% year over year.

In the US, the same-store sales surged 24.6% in the past quarter.

The company's CEO, Craig Menear stated that the company had spent roughly $1.7 billion on temporary pay and benefits, and some of these compensations will turn into permanent wage increases. This change will add $1 billion in yearly expenses.

Moreover, Home Depot is looking to expand in the building utility and maintenance sector. It is in discussions to repurchase HD Supply Holdings for $8 billion after selling it in 2007 to Bain Capital.

Since the beginning of the year, Home Depot's stock price went up 28%.







Miguel A. Rodriguez
Miguel A. Rodriguez

Miguel a lucrat pentru instituții financiare importante, precum Banco Santander și Banco Central-Hispano. De asemenea, a publicat cărți despre Forex.