Home Depot Beats Estimates, Shares Stay Steady

Shares of Atlanta-based Home Depot (NYSE: HD  ) are mostly sitting out today's stock market rally, despite reporting Q2 earnings results this morning that came in ahead of estimates on both profits and revenues.

Home Depot earned $1.24 per diluted share in Q2 on $22.5 billion in revenue. Analysts expected the company to earn $1.20 per share on $21.7 billion in revenue. The company's results showed earnings growth of 23%, sales growth of 10%, and same-store sales growth of 11%. These results were somewhat less impressive than they appear, inasmuch as last year, Home Depot had one fewer sales weeks in its fiscal second quarter due to quirks of the calendar.

In a statement, Home Depot CEO Frank Blake described the results as exceeding his expectations, and noted that Home Depot "benefited from a rebound in our seasonal categories, continued strength in the core of the store and the recovering housing market in the U.S."

The company raised guidance for both sales and earnings. Same-store sales are now expected to rise 6% this year, total sales more than 4%, and earnings per share could be up 20% to $3.60 for the year. This last number, however, suggests the potential for Home Depot falling short of analyst estimates of $3.63 a year.

Shares of the company were mostly unchanged in midday trading, wobbling up and down a few pennies around $79 per share.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2602694, ~/Articles/ArticleHandler.aspx, 7/23/2014 7:54:17 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement