Hunter Frayne's Contributor Page
Company: Home Depot Inc (NYSE:HD)
Last Updated: February 23, 2020 (Prior to the fiscal 4Q2019 earnings release on February 25, 2020).
View: Bullish
Model description: The main reasons behind my assumptions of the home depot model are comp-store sales, operating expenses and cost of goods sold. Comp-store sales plays a more pertinent factor in my model, as estimates of operating expenses and cost of goods sold are not expected to change drastically. In the 3Q earnings call Home Depot appealed to its strong expense control and continued productivity in their business model as reasons for a strong operating expense performance. I believe that any benefit accrued from those factors will likely be eroded by the costs of changing their legacy IT system, as it is very expensive as workflow, dependency and ROI issues present themselves during this change....click here to continue reading
Last Updated: February 23, 2020 (Prior to the fiscal 4Q2019 earnings release on February 25, 2020).
View: Bullish
Model description: The main reasons behind my assumptions of the home depot model are comp-store sales, operating expenses and cost of goods sold. Comp-store sales plays a more pertinent factor in my model, as estimates of operating expenses and cost of goods sold are not expected to change drastically. In the 3Q earnings call Home Depot appealed to its strong expense control and continued productivity in their business model as reasons for a strong operating expense performance. I believe that any benefit accrued from those factors will likely be eroded by the costs of changing their legacy IT system, as it is very expensive as workflow, dependency and ROI issues present themselves during this change....click here to continue reading
| Home Depot Earnings Model (Hunter Frayne).xlsx |
Hunter Frayne is an undergraduate student at the University of Connecticut studying philosophy and economics. At UConn, Hunter is involved in finance society, pre-law society, and club hockey. Professionally he has had a variety of internships including at the Attorney General's Office, Pitch Gauge, The Hanover Insurance Group, IBM and now Gutenburg Research. In his free time when Hunter is not studying the market and researching securities he enjoys working out, hiking, and spending time with his family.
Disclosure: 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.
Disclosure: 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.