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Home Depot (HD) Stock Down 3% Even after Better Than Expected Q3 Earnings

Published

1 Monat ago

November 18, 2020

Home Depot’s Earnings Per Share came in at $3.18 against the $3.06 expected from analysts. The retailer’s total sales surged by 24% from the year-ago period.

The shares of Home Depot Inc (NYSE: HD) plunged in the pre-market and continued following after the market opened despite the retailer posting better than expected Q3 earnings. As reported by CNBC, Home Depot posted revenue of $33.54 billion as against the $32.04 billion expected by analysts surveyed by Refinitiv.

Home Depot ranks as one of the retailers that saw an increase in growth as the coronavirus pandemic rages, partly based on the demand for home deco materials. People placed their focus on improving their home interiors while working from home. The improved earnings stem from increased demand for Home Depots’ products during the pandemic, as well as the firm’s cost-cutting strategies.

“Our ability to effectively adapt to this high-demand environment is a testament to both the investments we have made in the business as well as our associates’ focus on customers,” CEO Craig Menear said in a statement. “We continue to lean into these investments because we believe they are critical in enabling market share growth in any economic environment.”

Home Depot Q3 Results

Per the numbers, Home Depot’s Earnings Per Share came in at $3.18 against the $3.06 expected from analysts. The Georgia-based retailer said that its total sales surged by 24% from the year-ago period. Net sales were up by 23% to $33.54 billion, from $27.22 billion reported the year ago. Home Depot surpassed analysts’ expectations of $32.04 billion.

As a cap to its performance, the US same stores sales skyrocketed by about 24.6% in the quarter under review while the Sales per square foot rose more than 23% to $552.85.

Despite the impressive earnings report by the company, its shares were down by 2.21% in the pre-market to trade at $273.40. At the time of writing, teh stock is 3.09% down, at $271.31. According to Brian Nagel, a senior analyst at Oppenheimer who spoke to CNBC in an interview noted that the plunge in Home Depot’s stock following the earnings report comes as investors believe that the growth recorded by the company during the pandemic is unsustainable.

While the stock has lost about 3% in the past three months according to MarketWatch, it has surged by about 28% year on year.

Projected Growth Strategy

Home Depot seeks to sustain the growth in revenue and profitability recorded this quarter, through the acquisition of HD Supply, a former unit of one of North America’s largest industrial products distributors, in a deal valued at $8 billion. The acquisition of HD Supply is seen as a strategic feat for Home Depot’s businesses as the former has a customer network base of 500,000, according to Kenneth Leon, a CFRA analyst.

Home Depot is also set to make its temporary employee compensation program to become permanent. As the company looks to maximize its investment and cost-cutting strategies to improve future performance, investors will hope for the firm’s stocks to retest its all-time high of $292.95 attained on August 27.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Grayscale’s AUM Hits $19B, Up from $16.4B Announced Week Ago

Published

14 Minuten ago

Dezember 29, 2020

While it may be too early to project the possible performance of Grayscale in 2021, the spate of patronage the company recorded in the last two quarters of 2020 looks quite inspiring.

In what confirms the continued embrace of Bitcoin (BTC) and altcoins by institutional investors and the big-money clients, Grayscale’s total Assets Under Management (AUM) has been reported to top $19 billion, a significant uplift from the $16.4 billion reported a week ago. According to a report by CoinDesk, Grayscale hit this AUM milestone on December 28, and Grayscale’s Bitcoin Trust holds by far the largest chunk of the total assets at $16.3 billion.

The recent rally of Bitcoin to new highs as recorded in the past days started as a chain reaction that took its precedent months ago when Wall Street firms and institutional investors began betting big on Bitcoin. The investment made by the likes of MicroStrategy Incorporated (NASDAQ: MSTR), Square Inc (NYSE: SQ), and PayPal Holdings Inc (NASDAQ: PYPL) did not just help put Bitcoin in the limelight through mainstream media, it also prompted the embrace of the digital assets by other firms.

With this chain reaction, the price of Bitcoin continued to soar in response to boosted demand for the coin, and institutions like Grayscale that serves institutional investors benefited from this new demand, and hence, the continued increase in the firm’s AUM. Besides BTC, Grayscale’s Ethereum (ETH) AUM is now worth $2.1 billion, while the bulk of smaller holdings in Litecoin (LTC), XRP, and ZCash amongst others helped Grayscale’s total AUM to reach the new milestone.

Grayscale’s AUM May See More Boost in 2021

While it may be too early to project the possible performance of Grayscale in the coming year 2021, the spate of patronage the company recorded in the last two quarters of 2020 makes the case for improved performance provided the tempo is sustained.

Just as has been noted earlier, the continued embrace of cryptocurrency assets by highly liquid companies will continue to have a positive reaction on the price of Bitcoin, and by extension, this will even make more people pick interest in BTC. As a relatively young asset class, Bitcoin and altcoins have tremendous room to grow as the adoption rate is still not optimized owing to certain regulatory provisions in most countries, Grayscale and other hedge funds have enough room to compete for new clients entering the space.

With Grayscale been among the institutions at the forefront of helping to drive the acceptance of BTC, ETH, and other digital currencies, enjoying the dividends of its works through impressed AUM figures does not come as much of a surprise.

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eToro Said to Be in Talks With Goldman About Possible $5B IPO: Report

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59 Minuten ago

Dezember 29, 2020

The crypto trading/investment management platform is also considering the possibility of a merger with a special purpose acquisition company.

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Altcoin Rally Dimming Bitcoin’s Shine, Polkadot Gains 34% in One Week

Published

2 Stunden ago

Dezember 29, 2020

Polkadot (DOT) saw daily gains of 22.5% wrapping up an impressive week with an almost 34% rise in its value.

Bitcoin bullish run looks to have come to a halt amidst an altcoin rally which has seen relatively lower coins put up impressive performances in the past few weeks. Bitcoin dominance is gradually fading as many experts believe the biggest digital coin is backing down as some top altcoin are showing strong “moves” or signals.

Bitcoin hit an all-time high over the weekend, the third time its price has done so in just over 2 months. The price of the biggest digital coin touched $28,400 on December 27, before a lightning drop took it to $27,000 just hours of that incredible feat.

Bitcoin failed to hold onto the $27,000 mark as its price further dropped to $26,000 a day after and is now testing lower levels centered on $26,000 as immediate support. Reports from crypto exchanges revealed BTC/USD trading at lows of $25,830 during the early hours of December 29.

While Bitcoin has seen red over a couple of days, some altcoins are putting up impressive numbers, giving off signals of a strong altcoin rally. Despite XRP’s current issues, the altcoin market is showing glimpses of its glory days as some digital coins are poised to see major gains over the next couple of weeks. Ethereum (ETH) is at the forefront of the rally, with its price climbing above $700 for the first time since May 2018.

Polkadot (DOT) also saw daily gains of 22.5% wrapping up an impressive week with an almost 34% rise in its value. The coin is now the seventh-largest token by market cap. Kusama (KSM), a cousin of Polkadot, also saw its price gain 46% last week, pushing its price from $43.1 to $63. The digital token is currently trading at $56 but experts are adamant a breakout above $65 is possible as the token has rebounded off the 20-day exponential moving average ($50.90)

Speaking on the possibility of a long term altcoin rally, analyst Van de Poppe stated that altcoins are next in line to see greens. He added that the next “impulse wave” on Bitcoin next year should be able to take the market to $40,000 or $50,000, but until then, the possibility of a continuance altcoin rally is very much likely.

Although many factors could be in play with regards to the latest Bitcoin price dip, it’s recent fallout with Ripple’s XRP leads the way. Ripple was hit with a lawsuit from the United States Security and Exchange Commission (SEC) and subsequently suffered drops that left its price in a pit. XRP, the fourth-largest cryptocurrency by market cap, is now trading at $0.20 as news broke that Coinbase, a major US cryptocurrency exchange has decided to suspend its trading from next month.

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Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.

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