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Home Depot, Inc. (HD)

  • Nov. 19, 2014, 8:37 AM
    • Target (NYSE:TGT) says YTD costs for the large 2013 data breach are at $140M on a pre-tax basis.
    • Total gross expenses of $248M since Q4 of last year have been partially offset by a $90M insurance receivable.
    • The retailer says future data-breach expenses are not expected to be material.
    • The ratio of insurance coverage to costs could be of interest to breach brethren Home Depot (NYSE:HD) and Staples (NASDAQ:SPLS).
    | Comment!
  • Nov. 18, 2014, 10:54 AM
    • Execs with Home Depot (HD -1.5%) were very positive on the start to Q4 during the company's earnings call this morning.
    • Sales for the first two weeks of November were "impressive."
    • Home Depot's home improvement market share rose 23 bps to 27.07% over the last year. The tally includes strong growth in the online channel.
    • Fulfillment centers will cover 90% of the U.S. for parcel shipments next year.
    • Spending in the pros business has been vibrant, according to management. Interestingly, DIY boomers are started to opt for hiring pros.
    • There's a hint from management that Home Depot will raise its dividend in Q1 of 2015.
    | Comment!
  • Nov. 18, 2014, 8:41 AM
    • Home Depot (NYSE:HD) was a little fuzzy today on how much the massive data breach in September will end up costing it.
    • For now, the home improvement giant is going with $28M in expenses for the current quarter and $34M for FY14. The legal part of the expense equation remains an unknown variable.
    • Shares of Home Depot are down 0.7% in early action as analysts seem focused on the conservative guidance from the company in the face of strong comps.
    • Previously: Home Depot beats estimates, strong comps power Home Depot in Q3
    | Comment!
  • Nov. 18, 2014, 6:59 AM
    • Home Depot (NYSE:HD) reports comparable-store sales rose 5.2% during Q3.
    • The comp delivered in the U.S. was 5.8%.
    • Total operating expenses increased 2.8% to $4.632B during the period, led by a 3.0% rise in SG&A expenses.
    • Merchandise inventory +5.8% to $12.01B.
    • Guidance: 2014 sales growth of 4.8% expected and a forecast for 2014 EPS of $4.54 is reaffirmed.
    • HD -0.8% premarket.
    | Comment!
  • Nov. 18, 2014, 6:05 AM
    • Home Depot (NYSE:HD): Q3 EPS of $1.15 beats by $0.02.
    • Revenue of $20.52B (+5.4% Y/Y) beats by $50M.
    • Press Release
    | 1 Comment
  • Nov. 17, 2014, 5:30 PM
  • Nov. 8, 2014, 9:25 AM
    • Energy companies finally are starting to halt a few new U.S. drilling projects as oil prices fall, which Barclays believes may put the U.S. oil boom at risk but "on balance, we believe lower oil prices are good.”
    • If strong U.S. energy growth is interrupted, spending in the sector could be cut by $40B, but consumers could save $70B next year as the price at the pump falls for gasoline and diesel, according to Barclays head of U.S. equity strategy Jonathan Glionna.
    • The most likely beneficiaries would be discretionary areas such as restaurants, entertainment, apparel, electronics and furniture, he says.
    • Glionna lists 27 stocks that could benefit from lower oil prices: AAL, AGCO, AXL, BERY, BLMN, BWLD, CHH, CLX, DE, DPZ, FDX, GM, HD, KMB, KR, KSS, MHK, MMM, PENN, PPG, SAVE, SHW, TGT, UPS, VALWMS, WMT.
  • Nov. 7, 2014, 9:29 AM
    • Home Depot (NYSE:HD) says it hasn't calculated the costs associated with its data breach, although it warns a "material adverse effect" in FQ4 and beyond is possible.
    • Analysts note that despite the eye-popping headline on the 53M email addresses scooped up from the company's system by hackers, most large-scale breaches at large retailers have had almost no long-term impact on sales.
    • Shares of HD are down 0.2% in premarket action.
    | 1 Comment
  • Nov. 6, 2014, 4:44 PM
    • Home Depot (NYSE:HD) discloses that 53M email addresses were taken during the data breach earlier this year initiated through a malware attack.
    • Though the company says the files with the email addresses didn't contain personal information, the risk of customers being targeted by phishing scams exists.
    • Home Depot also backed its previous guidance for FY14 sales growth and EPS ahead of the release of Q3 results on November 18.
    • HD -0.1% AH.
  • Oct. 30, 2014, 3:47 PM
    • Bullish on consumer willingness to spend more on their homes, Goldman just gives a price-target boost to Neutral-rated Home Depot (HD +1%), but Lowe's (LOW +0.9%) gets an upgrade to Buy.
    • "Looking at firms in our coverage we consider to operate outside of Amazon’s direct line-of-fire, with the ability to invest in omnichannel at their own pace, Lowe's 2014E EBIT margin is one of the furthest below its own peak, and its own mean," says analyst Matthew Fassler, explaining why Lowe's gets the Buy nod over, say, Home Depot.
    | Comment!
  • Oct. 14, 2014, 10:17 AM
    • Home Depot (HD -1.4%) slumps after SunTrust Robinson Humphrey cuts its rating on the stock to Neutral from Buy on a valuation call.
    • The investment firm notes the weak sales trends at suppliers for renovation products.
    | Comment!
  • Oct. 10, 2014, 12:45 PM
    • Home Depot (HD +0.4%) presented today at meeting focused on Asian investors.
    • The company says its long-term target is to raise operating margin by 140 bps to 13%.
    • There was considerable discussion about the "stage 2" of the housing recovery underway in the U.S. The difference between a moderate recovery or a sharp one has big implications for the home improvement giant.
    • Home Depot expects to gain more efficiency from supply chain changes and forecasting improvements.
    • FY14 guidance is reiterated: Sales growth ~4.8%; Comp store growth ~4.6%, EPS $4.54; store openings +6.
    • Home Depot's Asia Investors Meeting presentation (.pdf)
    | Comment!
  • Sep. 24, 2014, 1:13 PM
    • NPD Group reports the U.S. small home appliance saw sales rise 4% to $19.6B for the year ending June 2014.
    • Perhaps a surprise, growth in the rice cooker and electric kettles categories were stronger than what was seen for single-serve brewing systems and countertop blenders.
    • Related stocks: GMCR, SBUX, WHR, CONN, HGG, HD, NC, SWK, SODA,
    | Comment!
  • Sep. 23, 2014, 7:15 PM
    • The Home Depot (NYSE:HD) data breach has started to trigger fraudulent transactions that are rippling across financial institutions and, in some cases, draining cash from customer bank accounts, WSJ reports.
    • Financial institutions are said to be increasing efforts to block the transactions by rejecting them if they appear unusual; HD has said that 56M cards may have been exposed in a five-month attack on its payment terminals.
    • The amount of fraud and the type of illicit transactions reportedly are not much different from activity that has followed other large attacks, but that could change quickly in the coming weeks.
  • Sep. 20, 2014, 3:05 PM
    • Computer experts inside Home Depot (NYSE:HD) had warned for years that they might be easy prey for hackers, the NY Times says.
    • Former members of HD's cybersecurity team say the company was slow to respond to early threats and only belatedly took action, that it relied on outdated software to protect its network and scanned systems irregularly, and that some members of its security team left after managers dismissed their concerns.
  • Sep. 19, 2014, 9:24 AM
    • Though Home Depot's (NYSE:HD) data breach involved 16M more accounts than Target's (NYSE:TGT), so far the damage to the company and the stock has been lower.
    • While Target disclosed its attack during the peak of the holiday season and saw an immediate drop in store traffic, Home Depot announced its breach during a slower period after the peak summer peak selling season.
    • Wedbush notes that Home Depot also benefited from "data-breach fatigue" in the retail sector.
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Company Description
Home Depot, Inc., is a home improvement retailer. Its stores sell an assortment of building materials, home improvement and lawn and garden products and provide a number of services.