Home Depot Derails: Fool by Numbers (HD)

Home Depot Derails: Fool by Numbers

By Motley Fool Contributors | More Articles
May 16, 2007 | Comments (0)

On May 15, Home Depot (NYSE: HD ) released first-quarter earnings for the period ended April 29.

Sales rose by a mere 0.6% as 46% sales growth in the supply segment was offset by a 4.3% decline in the retail segment. Comparable-store sales fell 7.6%.
Net profit decreased 29.5% to $1.05 billion because of rising selling, general, and administrative expenses.
For fiscal 2007, the company believes its earnings per share will be at the low end of its earlier guidance of the 4%-9% decline that management expects.

(Figures in millions, except per-share data.)

Income Statement Highlights

	Q1 2007	Q1 2006	Change
Sales	$21,585	$21,461	0.6%
Net Profit	$1,046	$1,484	(29.5%)
EPS	$0.53	$0.70	(24.3%)
Diluted Shares	1,969	2,122	(7.2%)

Get back to basics with the income statement.

Margin Checkup

Q1 2007	Q1 2006	Change*
32.9%	33.7%	(0.8)
8.5%	11.3%	(2.8)
4.9%	6.9%	(2.1)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets	Q1 2007	Q1 2006	Change
Cash + ST Invest.	$2,081	$2,586	(19.5%)
Accounts Rec.	$3,529	$3,412	3.4%
Inventory	$14,413	$13,401	7.6%

Liabilities	Q1 2007	Q1 2006	Change
Accounts Payable	$9,706	$9,452	2.7%
Long-Term Debt	$11,640	$6,652	75.0%

The balance sheet reflects the company's health.

Cash Flow Highlights
No cash flow statement? That's like trying to pound in a nail without a hammer!

Free cash flow is a Fool's best friend.

Related Foolishness:

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.

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