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%.
Sources: cnbc.com, reuters.com
This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.
You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.
This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com
JME Financial Services (Pty) Ltd trading as ZA.CAPEX.COM acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via ZA.CAPEX.COM, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15. Magnasale Trading Ltd is the principal to the CFD purchased by investors.