Home Depot Earnings

Diane Macedo reports that Home Depot has beat estimates with its 2Q earnings report.

Home Depot Tops Views Amid Housing Rebound

By Retail FOXBusiness

Home Depot’s (HD) second-quarter profit climbed 17% amid double-digit growth in comparable store sales, as a stronger U.S. housing market helped the home-improvement retailer beat Wall Street expectations.

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The company also gave another upgrade to its outlook for the year, calling for per-share earnings of $3.60 and revenue growth of 4.5%. Home Depot previously expected earnings of $3.52 a share and revenue growth of 2.8%.

Shares jumped 2.9% to $77.40 in pre-market trading Tuesday. As of Monday’s close, the stock has risen 32.6% over the last year.

Home Depot has reported better quarterly results of late, thanks in part to its turnaround efforts, a stronger home construction industry and higher new home sales.

In the latest period, the Atlanta-based company recorded a profit of $1.8 billion compared to $1.53 billion in the year-ago period. On a per-share basis, earnings rose to $1.24 from $1.01. Analysts projected earnings of $1.21 a share.

Sales were up 9.5% at $22.52 billion, handily beating estimates of $21.8 billion. Home Depot said a calendar-timing change reduced total sales growth for the second quarter by about $249 million.

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Same-store sales leapt 10.7% overall and 11.4% in the U.S., one year after Home Depot saw just 2.1% growth overall.

Gross margin ticked up to 34.3% from 34.2%, while output costs rose 9.3%. The average customer ticket was $57.39, up 4.3% year-over-year. Transaction volume increase 4.9%.

“The second quarter results exceeded our expectations as our business 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.,” Chairman and CEO Frank Blake said in a statement.

Home Depot also noted that it has bought back $4.3 billion of its shares so far this year and intends to buy an additional $2.2 billion by the end of this year.

Rival Lowe’s (LOW) is slated to report second-quarter earnings on Wednesday, with analysts looking for per-share earnings of 79 cents on revenue of $15.07 billion.