Home Depot Shares Jump 2% Premarket After Company Beats Earnings Estimates, Raises Outlook

Home Depot Inc. shares rose 2% in premarket trade Tuesday, after the company beat quarterly earnings estimates and raised its profit outlook for the year. The home-improvement retail chain said it had net income of $2.0 billion, or $1.67 a share, in the first quarter, up from $2.8 billion, or 41.44 a share, in the year-earlier period. Sales rose to $23.9 billion from $22.8 billion. The FactSet consensus was for EPS of $1.61 and sales of $23.8 billion. Same-store sales rose 6%, also ahead of the FactSet consensus of 5.65. The company said it still expects fiscal 2017 sales to grow about 4.6% and same-store sales to rise 4.6%. It raised its EPS outlook to reflect anticipated share buybacks to $7.15. The current FactSet consensus is for EPS of $7.20. Shares have gained 17% in 2017, while the Dow Jones Industrial Average has climbed 6%.