Home Depot Inc. (NYSE: HD)
Home Depot Inc. announced higher than anticipated third-quarter financial results before the opening bell on Tuesday.
The Atlanta-based company also revised its fiscal 2018 revenue and earnings outlook upward, despite signs that the U.S. housing market is cooling.
HD stock climbed 2% in pre-market trade but later gave back the gains during the first hour of the regular session.
HD Earnings & Outlook
The home improvement retailer posted earnings of $2.87 billion, or $2.51 per share, up 32% from $2.2 billion, or $1.84 per share, from the comparable quarter last year. The huge rise in profit was due to a sharp fall in its provision for income taxes. Revenue came to $26.3 billion, an increase of 5.1% from a year earlier.
Analysts were expecting adjusted earnings of $2.26 per share on revenue of $26.26 billion, according to figures compiled by Refinitiv. Comparable sales jumped 4.8% beating expectations of a 4.7% rise.
For the full year, the retailer expects revenue to rise by 7.2% and comparable sales growth of 5.5%. Home Depot also estimates that earnings will grow by 33.8 percent to $9.75 per share for the year, compared with its earlier forecast of a 29.2 percent rise. Analysts model GAAP earnings of $9.56 per share and Non-GAAP earnings of $9.55 a share.
Home Depot CEO Comments
“We are pleased with our third quarter results and the growth that we saw from both our professional and do-it-yourself customers. Our customers continue to respond to our expansive assortment and enhancements we are making to drive an interconnected shopping experience. We saw continued strength across the store, as well as healthy growth in our digital business,” said Craig Menear, chairman, CEO and president. “We believe this is a testament to the overall strength of demand in the home improvement market.”
Home Depot, Inc. is a home improvement retailer that sells building materials and home improvement products. It operates The Home Depot stores, which provides full-service, warehouse-style stores that sells a wide assortment of building materials, home improvement products and lawn and garden products and provide a number of services.
The company offers national installation services through pre-screened independent contractors for products ranging from floors to roofs, windows to water heaters, and kitchen cabinets to vinyl siding. Its retail stores offer professional customers, including repair and remodel contractors, special services and support to make them more successful on the job site.
The company serves professional remodelers, general contractors, repairmen, small business owners, and tradesmen. Home Depot was founded by Bernard Marcus, Arthur M. Blank, Kenneth Gerald Langone and Pat Farrah on June 29, 1978 and is headquartered at Atlanta, GA. – MarketWatch