Home Depot, Inc. (NYSE: HD)
Home Depot shares surged during premarket trading on Tuesday, following a superb second-quarter report that easily flew past Wall Street estimates.
The company also raised its fiscal 2018 guidance for both sales and same-store revenue.
The results come after a disappointing first-quarter during which the home improvement retailer experienced a dip in earnings and sales, due to bad weather conditions that affected construction projects.
HD stock gained more than 2.5% before the opening bell after the quarterly report.
HD Earnings & Outlook
The Atlanta, Georgia-based company posted a net income of $3.51 billion, or $3.05 per share for the quarter.
In the year-ago period, the retailer had net income of $2.67 billion, or $2.25 per share. Total sales came in at $30.46 billion, an increase 8.4% from the same period in the previous year.
Thompson Reuters, based on analyst predictions, was for earnings of 2.85 per share on sales of $30.03 billion.
Global same-store sales grew 8.0% to finish ahead of estimates of 6.6% rise. U.S. same-store sales topped expectations of 6.4% growth, after posting a growth of 8.1% during the quarter.
For its fiscal full year, Home Depot expects sales growth of between 7.0% to 6.7%, and same-store sales growth of 5.3% to 5.0%. The company also revised its earnings per share guidance from 28.0% to 29.2%.
Home Depot CEO Comments
“We were very pleased with our record second quarter sales and earnings. Not only did our seasonal business rebound from the first quarter, but our overall results exceeded our expectations. These results exemplify the outstanding execution of our combined team of store associates, merchants, suppliers and supply chain,” commented Craig Menear, Chairman, Chief Executive Officer and President of Home Depot.
Home Depot, Inc. Company Profile
The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, lawn and garden products, and décor products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself and professional customers.
The company also offers installation programs that include flooring, cabinets, countertops, water heaters, and sheds; and professional installation in various categories sold through its in-home sales programs, such as roofing, siding, windows, cabinet refacing, furnaces, and central air systems, as well as acts as a contractor to provide installation services to its do-it-for-me customers through third-party installers.
In addition, the company provides equipment and tools rental services. The company primarily serves home owners; and professional renovators/remodelers, general contractors, handymen, property managers, building service contractors, and specialty tradesmen, such as installers. It also sells its products through online.
The company operated 2,284 stores, including 1,980 in the United States, the Commonwealth of Puerto Rico, and the territories of the Guam and U.S. Virgin Islands; 122 in Mexico; and 182 in Canada as of January 28, 2018. The Home Depot, Inc. was founded in 1978 by Pat Farrah, Arthur M. Blank, Bernard Marcus, and Kenneth Gerald Langone. –YahooFinance
