Home Depot Inc Earnings Model (Tiwari)
Author: Kaustubh Tiwari, Published: February 23, 2020 1:50pm, Category: Earnings Preview (Prior to Fiscal 4Q2019 earnings)
Summary of Model: I believe that the 4th quarter earnings of Home Depot will be slightly bullish, as there will be an increase in comp sales based on the progression of initiatives and compounding long-term investments. Furthermore, I expect future comp sales to increase based on large ticket transactions in the future due to inconsistent harsh weather that has been arising due to global warming issues. However, I believe that COGS will increase slightly due to tariffs imposed based on growing concern of viruses. Also, comp store sales will decrease slightly due to less commodities available.
Disclosure of Potential Conflicts of Interest: The author of this article/model has no financial investment or other conflict of interest related to the subject company or other companies discussed. Any views made or implied in the content represent the author’s opinions.