Today’s Research Reports on Stocks to Watch: Home Depot and Halliburton
Home Depot and Halliburton were both losers in Tuesday’s trading session. Despite Home Depot reporting stellar third quarter results the stock still ended modestly in the red. Halliburton also lost a CFO this week but appointed a new one.
RDI Initiates Coverage on:
The Home Depot, Inc.
The Home Depot, Inc. shares were little changed on Tuesday on trading volume roughly three times higher than usual at about 14.2 million shares traded. The stock only saw modest movement despite the home improvement retailer reported third quarter results that came in better than expected. For the quarter, earnings per share jumped a staggering 36% to hit $2.51. Revenue also grew 5.1% to hit $26.30 billion. Analysts had been waiting for earnings of $2.27 a share and revenue of $26.24 billion. Same-store sales jumped 4.8% with U.S. comps seeing a growth of 5.4%. Looking ahead the company is expecting full year earnings per share to rise 34% to hit $9.75. Revenue is expected to grow 7.2%. CEO Craig Menear said on the earnings call, "We’re pleased with our results in the quarter. Sales for the third quarter were up 5.1% from last year to 26.3 billion. Comp sales were up 4.8% from last year and our US comps of positive 5.4%. Diluted earnings per share were $2.51 in the third quarter. From a geographic perspective sales were strong across the US. All but one of our 19 regions posted positive comps. The exception was our Gulf region, which faced tough compares associated with the anniversary of Hurricane Harvey. Recall that we’re lapping almost 300 million of Hurricane related sales from the third quarter of last year. While this quarter brought Hurricanes Florence and Michael, the scope of devastation was more compact from a geographical perspective than what we experienced in prior year. Nonetheless, these storms did inflict significant damage in our community and thoughts and prayers are with them as they begin the recovery efforts. Our thoughts and prayers also go out to all those who are currently being impacted by the deadly fires in California."
Access RDI’s The Home Depot, Inc. Research Report at:
Halliburton Company shares closed down 5.53% on Tuesday with higher trading volume than usual at about 21.5 million shares. The stock hit a new low of $32.10 and was one among several oil and gas stocks to see losses as concerns amplified on potential cut backs on production from clients. Oil prices have also been lackluster. Earlier in the week the company also announced that Chief Financial Officer Chris Weber “is leaving the company to pursue other opportunities." He has spent less than two years with the company since joining in June of last year. "We sincerely thank Chris for his contributions to Halliburton and wish him well in the future," Jeff Miller, president and CEO of Halliburton said. With the departure of Weber, the company has promoted Lance Loeffler to the rule of CFO. Loeffler has been with the company since 2014 as vice president of corporate development overseeing mergers and acquisitions.
Access RDI’s Halliburton Company Research Report at:
Our Actionable Research on The Home Depot, Inc. (NYSE: HD) and Halliburton Company (NYSE: HAL) be downloaded free of charge at Research Driven Investing.
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