The 10-second takeaway
For the quarter ended Oct. 28 (Q3), Home Depot beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Gross margins increased, operating margins expanded, net margins dropped.
Home Depot logged revenue of $18.13 billion. The 25 analysts polled by S&P Capital IQ expected sales of $17.91 billion on the same basis. GAAP reported sales were 4.6% higher than the prior-year quarter's $17.33 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 $0.74. The 27 earnings estimates compiled by S&P Capital IQ predicted $0.71 per share. GAAP EPS of $0.63 for Q3 were 5.0% higher than the prior-year quarter's $0.60 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 34.6%, 20 basis points better than the prior-year quarter. Operating margin was 9.6%, 30 basis points better than the prior-year quarter. Net margin was 5.2%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $17.53 billion. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $73.82 billion. The average EPS estimate is $3.00.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 3,387 members out of 4,325 rating the stock outperform, and 938 members rating it underperform. Among 1,183 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,026 give Home Depot a green thumbs-up, and 157 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 $59.88.
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