On May 15, Home Depot
- 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* |
|
|---|---|---|---|
|
Gross Margin |
32.9% |
33.7% |
(0.8) |
|
Operating Margin |
8.5% |
11.3% |
(2.8) |
|
Net Margin |
4.9% |
6.9% |
(2.1) |
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:
Home Depot is a Motley Fool Inside Value pick. For more great recommendations on undervalued stocks, come and join the market-beating newsletter free for 30 days.
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.
