Home Depot's profit jumps 10% on hurricane demand

Industries Reuters

(REUTERS)

Home Depot, the largest U.S. home improvement chain, beat analysts' third-quarter sales and profit estimates on Tuesday, as hurricanes Harvey and Irma boosted demand for storm-related emergency products and rebuilding materials.

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The Dow component's shares, already up 23 percent this year, were 2.2 percent higher in premarket trading.

Sales at stores open for more than a year rose 7.9 percent, above the average analyst estimate of 5.9 percent, according to Thomson Reuters I/B/E/S.

Comparable sales at U.S. stores increased 7.7 percent, above the average analyst estimate of 6 percent.

Home Depot said hurricane-related sales added about $282 million to comparable sales.

Home improvement retailers benefit from the sale of emergency storm-related merchandise such as generators, batteries and flashlights during hurricanes as well as from demand for rebuilding materials in the aftermath.

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Home Depot's net income rose to $2.17 billion, or $1.84 per share, in the third quarter ended Oct. 29, from $1.97 billion, or $1.60 per share, a year earlier.

Net sales rose 8 percent to $25.03 billion.

Analysts on average had expected earnings of $1.82 per share and revenue of $24.55 billion, according to Thomson Reuters I/B/E/S.

 

(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Sriraj Kalluvila)