UPDATE: Gabelli & Company Downgrades The Home Depot to Hold
In a report published Wednesday, Gabelli & Company downgraded its rating on The Home Depot (NYSE: HD) from Buy to Hold.
Gabelli & Company noted, “Revenues of $18.1billion, were up 4.6% YoY, driven by continued demand for core products. Comparable store sales were positive 4.2%, and comp sales for U.S. stores were positive 4.3%. Ticket improved 2.9% to $54.55 and transactions improved 1.7% to $331.0 million. Adjusted EPS was $0.74 vs. $0.60 last year. Tickets under $50 (20% of sales) were flat and tickets over $900 (also 20% of sales) were up 4.3%. From a category perspective, kitchen, decor, paint, lumber, lighting, electrical, outdoor garden, hardware, and bath performed above average. Comp sales in building materials were negative due to a tough year over year comparison in roofing. Additionally, professional customer continues to gradually recover with larger pros (13% of sales) growing at a faster rate than smaller pros given better credit availability.”
The Home Depot closed on Tuesday at $63.38.
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