Retail
Why Home Depot Earnings Are Par for the Course
Published:
Last Updated:
Home Depot Inc. (NYSE: HD) reported its fiscal second-quarter financial results before the markets opened on Tuesday. Results were more or less in line with estimates and the investor response was par for the course. In terms of finding significance in this report, we may have to wait until analysts start to weigh in on the stock before we expect to see more movement one way or the other.
The company said that it had $1.97 in earnings per share (EPS) on $26.5 billion in revenue. The consensus estimates from Thomson Reuters called for $1.97 in EPS on revenue of $26.48 billion. Home Depot posted EPS of $1.73 and $24.83 billion in revenue in the same period of last year.
Comparable store sales for the most recent quarter were up 4.7%, and comp sales for U.S. stores were positive 5.4%.
Home Depot reaffirmed its fiscal 2016 sales guidance and expects sales will rise by roughly 6.3% and comp sales will be up about 4.9%. However, on the bottom line, the company raised its diluted EPS guidance for the year and now expects diluted EPS to grow by 15.6% from fiscal 2015 to $6.31. The consensus estimates call for $6.31 in EPS on $94.3 billion in revenue for the fiscal year.
Craig Menear, board chair, chief executive and president, commented:
We had a solid quarter, achieving the highest quarterly sales and net earnings results in company history as housing continues to be a tailwind for our business. This was made possible by our hard working associates in their continued dedication to our customers.
On the books, Home Depot’s cash and cash equivalents totaled $4.02 billion at the end of the quarter, versus $4.94 billion in the same period from last year.
Shares of Home Depot closed Monday up 0.4% at $137.06, with a consensus analyst price target of $148.20 and a 52-week trading range of $92.17 to $139.00. Following the release of the earnings report, the stock was up 0.6% at $137.85 in early trading indications on Tuesday.
Sponsored: Want to Retire Early? Here’s a Great First Step
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
