Market Minute: Bite-Size Earnings: HD, SHOP

Another Tuesday, another round of earnings! 

Home Depot (HD) is up in the premarket after beating 3Q estimates on the top and bottom line with EPS of $3.78 and revenue of $40.22 billion. However, comparable sales were down 1.3% from last year, and customer transactions and average ticket were both slightly lower. CEO Ted Decker cited strength in seasonal goods and outdoor projects, including grills and paint, despite macroeconomic uncertainty. The company updated its FY24 guidance, expecting comp. sales and EPS to fall year-over-year. 

Shopify (SHOP) is up sharply before the open after revenue of $2.16 billion grew 26% vs last year, making this its sixth quarter in a row of 25%+ revenue growth. Gross Merchandise Volume hit $69.72 billion. For 4Q, Shopify also forecasts revenue growth in the mid-to-high 20s. Importantly, these results don’t reflect the upcoming holiday season, which could boost the stock further as the merchants using its platform see increased business. 

Tune into the Schwab Network for more earnings breakdowns!