Citi Comments on Home Depot (HD) Earnings

Citi Comments on Home Depot (NYSE: HD).

The analyst comments "HD reported a mixed 1Q print — (i) EPS slightly beat the Street driven by a 9c lower tax rate benefit as EBIT missed, (iii) SSS of -2.8% missed the Street's -2.0% estimate with management citing a" delayed start to spring and continued softness in certain large discretionary projects"; and (iii) GM execution was solid with ~44bps expansion y/y and a slight beat vs. the Street. Despite the 1Q miss, HD reaffirmed full year 2024 guidance across the board. The FY24 SSS guidance of -1% looks slightly more 2H-weighted now given the 1Q SSS miss. Any discussion of sequential SSS performance & the health of the US consumer on the 9AM ET call will be key for HD shares today. At first glance, we expect shares to trade flat-to-slightly lower today but this should not be viewed as thesis changing print."

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