The 10-second takeaway
For the quarter ended May 5 (Q1), Home Depot beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share grew significantly.
Margins expanded across the board.
Home Depot booked revenue of $19.12 billion. The 21 analysts polled by S&P Capital IQ expected revenue of $18.61 billion on the same basis. GAAP reported sales were 7.4% higher than the prior-year quarter's $17.81 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.83. The 24 earnings estimates compiled by S&P Capital IQ predicted $0.76 per share. GAAP EPS of $0.83 for Q1 were 22% higher than the prior-year quarter's $0.68 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.9%, 20 basis points better than the prior-year quarter. Operating margin was 10.9%, 130 basis points better than the prior-year quarter. Net margin was 6.4%, 60 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $21.67 billion. On the bottom line, the average EPS estimate is $1.20.
Next year's average estimate for revenue is $76.97 billion. The average EPS estimate is $3.57.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 3,460 members out of 4,392 rating the stock outperform, and 932 members rating it underperform. Among 1,207 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,080 give Home Depot a green thumbs-up, and 127 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Home Depot is outperform, with an average price target of $74.20.
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