HOME DEPOT RESULTS SUCKED

12 comments

Posted on 13th November 2012 by Administrator in Economy |Politics |Social Issues

Home Depot stock is hitting a 12 month high today based on their awesome results. Only on Wall Street could a 1.4% increase in earnings be touted as good. And this is after a Hurricane Sandy boost. Here is a company with a PE Ratio of 22 and earnings growing by less than 2%. In my book, that is called overvalued. Comparable store sales grew by a respectable 4.3% during the quarter, but once you look into the details, it ain’t so hot. Two things make up a sales increase – Customer count and average ticket. Their customer traffic was only up 1.7%, so the remainder of the sales increase is attributable to inflation. Their inventory is growing faster than their sales and their operating cashflow declined by $307 million in the quarter. They are making hundreds of millions less profit than they made in 2007. This is considered a growth stock by the Wall Street shysters.

Home Depot Q3 net up 1.4%, sales up 4.6%

TEL AVIV (MarketWatch) — Home Depot Inc., (NYSE:HD) the world’s largest home-improvement retailer, reported on Tuesday that fiscal-third-quarter net income rose 1.4% on 4.6% higher sales. For the quarter ended Oct. 28, earnings reached $947 million, or 63 cents a share, from $934 million, or 60 cents, in the year-earlier quarter. The latest results reflect a charge of 11 cents a share for the planned closing of seven stores in China. The latest adjusted net income was 74 cents a share. Sales totaled $18.13 billion compared with $17.33 billion. A survey of analysts by FactSet produced consensus estimates of profit of 70 cents a share on sales of $17.92 billion. For the quarter, comparable-store sales rose 4.2%. For the year, Home Depot lifted its outlook for earnings to $2.92 a share, or an adjusted $3.03. FactSet’s survey is looking for $2.99. The quarter’s results reflect “what we believe is the start of the path toward the healing of the housing market,” Chairman and Chief Executive Frank Blake said in a statement.

 
12 Comments

  1. bluestem says:

    Tel AVIV? and no Onion, there’s gotta be more to the story.But,hey, we all read the papers just like Panetta does, right? Riiiiiight. John

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    13th November 2012 at 11:33 am

  2. Leobeer says:

    Yahoo poll:

    Best Buy holds its investor meeting today. The stock is down 40% in a year. Will you visit a big box store this holiday season?

    Yes, just to look (5517) 21%

    Yes, to buy (9410) 36%

    I have no need for them anymore (11216) 43%

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    13th November 2012 at 11:40 am

  3. Hope@ZeroKelvin says:

    I ceased shopping at Home Depot when I learned that their CEO, Mark Cuban, was a big Obama supporter.

    I use my locally owned feed store or the mom & pop hardware store.

    I figure I’ve spent almost $50K in these stores over the last 5 years, heh, instead of at Home Depot.

    Just wait until the 1%ers go TOTALLY on strike. No more home improvements, no more back yard construction projects, no more purchases of lawn equipment. Heh.

    And HELL NO, I am not shopping at ANY big box store this XMAS. It is small, locally owned mom & pop gift shops ALL THE WAY.

    We are gonna look back at these earning figures and say, wow, those were the good old days.

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    13th November 2012 at 11:46 am

  4. FIHCY says:

    Hope@ZeroKelvin says:

    “I ceased shopping at Home Depot when I learned that their CEO, Mark Cuban, was a big Obama supporter.”

    Um, …. Frank Blake is the CEO and Home Depot loves the goppies.

    “And this is after a Hurricane Sandy boost.”

    Um, ….. Sandy hit on the 29th and the HD 3rdQ ended on the 31st……

    Home Depot’s “success” is being driven by vast numbers of part-time temp workers.

    Youngsters entering the workforce have a brand new “American Dream” they can aspire to attain: A part time job and a home rental of their own.

    George Carlin had it right:
    http://www.youtube.com/watch?v=acLW1vFO-2Q

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    13th November 2012 at 1:46 pm

  5. Administrator says:

    FIHCY

    Yeah. The storm hit on the 29th and was known for a week in advance creating panic buying of generators and other supplies. The quarter ended on the 31st. So what’s your point?

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    13th November 2012 at 1:55 pm

  6. Eddie says:

    Home Depot is an important bellweather stock. Not a good sign here. I’ll say that.

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    13th November 2012 at 2:03 pm

  7. Administrator says:

    Home Depot sales were $77 billion in 2007 and they generated a $7.3 billion operating income.

    In the last 12 months they have generated $73 billion in sales and a $7.2 billion operating income.

    There results have gone nowhere in the last five years.

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    13th November 2012 at 2:08 pm

  8. FIHCY says:

    “Yeah. The storm hit on the 29th and was known for a week in advance creating panic buying of generators and other supplies.”

    Hurricane Sandy was south of Cuba one week before it hit the east coast so I think you’re stretching it a bit. For sure the east coast sold a bunch of generators.

    Comparing today to the housing bubble peak isn’t meaningful.

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    13th November 2012 at 2:59 pm

  9. Destin says:

    The co-founders are long gone, Arthur Blank bought the Atlanta Falcons and Bernie Marcus built the Georgia Aquarium and is a big advocate for small business. Marcus has told anyone who will listen that building a business like HD is completely and utterly impossible in today’s climate. He summed it up in four words on a local ATL talk show: government regulations, trial lawyers.

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    13th November 2012 at 8:58 pm

  10. President 7th Inning Stretch HOME DEPOT RESULTS SUCKED ? The Burning Platform | President 7th Inning Stretch says:

    [...] Source: http://www.theburningplatform.com/?p=43918 [...]

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    13th November 2012 at 2:13 am

  11. John A says:

    Home Deport will in the future start closing stores in some locations. They will not be able to survive otherwise.

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    13th November 2012 at 4:14 pm

  12. David says:

    Everyone is closing stores somewhere. Home Depot will continue to be strong with the coming apocalypse.

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    13th November 2012 at 6:08 pm

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