Source: Dreamstime
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On Tuesday, the popular U.S. home supply chain reported that its Q3 earnings for 2020 greatly exceeded expectations, with sales rising 24% compared to last year.
In line with the good news, Home Depot also announced that a portion of its temporary employee salary boosts that were implemented due to COVID-19 will become permanent, resulting in $1 billion additional expenses each year.
Here are the main financial highlights from Home Depot’s Q3 2020 earnings release:
– Total revenue: $33.54 billion versus expectations for $32.04 billion.
– Net income: $3.43 billion (24% increase year-over-year).
– Earnings per share: $3.18 versus expectations for $3.06.
– Sales: total sales are up 24% year-over-year, while digital sales are up 80% year-over-year. Sales of big-ticket items, like riding mowers and outdoor power equipment, attracted a great deal of buyer interest throughout the quarter, with the company even boasting that it had hosted its “most successful Halloween event”.
– Planned acquisitions: on Monday, Home Depot announced that it would pay $8 billion to acquire HD Supply – one of North America’s largest industrial product distributors.
Earnings guidance for fiscal 2020
While Home Depot did not provide a full-year outlook due to the pandemic, Brian Nagel, senior analyst at Oppenheimer, told CNBC’s “Squawk Box” that the company’s pandemic-fueled gains won’t be sustainable in the long run.
In addition, Chief Operating Officer Ted Decker noted that the continued increase in demand is putting pressure on the supply chains and forces the company to constantly introduce new products, adjust assortments and “in some cases, reduce the number of [stock keeping units] in certain categories to focus on the highest demand products.”
Upcoming reports
See the full list of upcoming earnings reports for 23 – 27 November in the tables below.
Monday, November 23rd 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| USA | Agilent Technologies Inc | Q4 2020 |
| USA | Ambarella Inc | Q3 2021 |
| USA | Urban Outfitters Inc | Q3 2021 |
| United Kingdom | Templeton Emerging Markets Investment Trust PLC | Half Year 2020 |
| United Kingdom | Edinburgh Investment Trust PLC | Half Year 2020 |
| United Kingdom | Talktalk Telecom Group PLC | Interim report for 2021 |
| United Kingdom | Daily Mail and General Trust P L C | Full Year 2020 |
Tuesday, November 24th 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| USA | Gap Inc | Q3 2020 |
| USA | HP Inc | Q4 2020 |
| USA | Autodesk Inc | Q3 2021 |
| USA | VMware Inc | Q3 2021 |
| USA | Dollar Tree Inc | Q3 2020 |
| USA | Progressive Corp | Report for October 2020 |
| USA | Analog Devices Inc | Q4 2020 |
| USA | Best Buy Co Inc | Q3 2021 |
| Ireland | Medtronic PLC | Q2 2021 |
| United Kingdom | Pennon Group PLC | Half Year 2021 |
| United Kingdom | Shaftesbury PLC | Full Year 2020 |
| United Kingdom | Compass Group PLC | Full Year 2020 |
Wednesday, November 25th 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| USA | Deere & Co | Q4 2020 |
| United Kingdom | United Utilities Group PLC | Half Year 2021 |
| United Kingdom | Babcock International Group PLC | Half Year 2021 |
| USA | Dell Technologies Inc | Q3 2021 |
Thursday, November 26th 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| United Kingdom | Britvic PLC | Full Year 2020 |
| United Kingdom | Severn Trent PLC | Half Year 2021 |
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