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MarketFoolery

2 Earnings, 2 Secondary Offerings

MarketFoolery

The Motley Fool

Money, Business, Motley, Business News, Stocks, News, Investing, Market, Fool

4.71.7K Ratings

🗓️ 23 February 2021

⏱️ 18 minutes

🧾️ Download transcript

Summary

Home Depot closes out the fiscal year with a strong quarter. Macy’s turns a profit in Q4 but gears up for a year of recovery and rebuilding. Bill Barker analyzes those stories, secondary offerings from Shopify and Carnival Cruise, and his inexperience with conspiracy theories.

Transcript

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0:00.0

It's Tuesday, February 23rd. Welcome to Marketfoolery. I'm Chris L. with me today.

0:07.0

It's Mr. Bell Barker. Good to see you. Good to be here.

0:11.0

We've got a couple of secondary offerings and we have a couple of fourth quarter earnings

0:16.0

reports. We're going to start with the earnings. Home Depot, fourth quarter profits

0:21.0

came in higher than expected, but shares falling a little bit today on concerns that 2021

0:28.0

is not going to be as strong for Home Depot as 2020 was and I will just point out

0:33.0

shares of Home Depot over the past year, even with the drop today shares are up a

0:38.0

little more like let's call it 10%, maybe 11%, 10, 11%, this is not a stock

0:45.0

that has shot to the moon in the past year. I'm it's still the same business.

0:50.0

They've done an amazing job over the last 10 months managing their business

0:56.0

in the wake of the pandemic. I'm not sure why there is at least a little bit

1:03.0

of pessimism today about Home Depot. The pessimism, if there is some, comes out

1:09.0

of what a small amount of guidance the company gave. So before addressing that on

1:15.0

the numbers, you know, the comps were up a comparable sales at existing stores

1:22.0

were up 24.5%, or total sales were up 24.5%, and comparable sales were up 25%.

1:32.0

So that gives you a sort of level set on how business did. They don't grow a lot of

1:37.0

stores at Home Depot. They just keep doing a great job at the stores they have,

1:42.0

not many clothes, not many open. So it's not a growth story through.

1:47.0

They expand the size of their stores in many cases with side lots for plants and

1:55.0

things like that and things that they can put outside the four walls of the store.

2:01.0

So growth for the company was about 25% for the year. And as you say, the stock only went

2:06.0

up about a limb percent. Part of that is because the sales growth was more expensive

...

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