Are Home Depot Earnings Really Good Enough For All-Time Highs?
Wikimedia CommonsThe Home Depot, Inc. (NYSE: HD) reported its fiscal second quarter financial results before the markets opened on Tuesday. The home improvement giant had $1.71 in earnings per share (EPS) on $24.8 billion in revenue compared to consensus estimates…
The Home Depot, Inc. (NYSE: HD) reported its fiscal second quarter financial results before the markets opened on Tuesday. The home improvement giant had $1.71 in earnings per share (EPS) on $24.8 billion in revenue compared to consensus estimates from Thomson Reuters that call for $1.71 in EPS on $24.69 billion in revenue. The same period from the previous year had $1.52 in EPS on $23.81 billion in revenue.
During this quarter, sale increased by 4.3% from the second quarter of fiscal 2014. At the same time, comparable store sales rose 4.2%, and comparable sales for U.S. stores were up 5.7%.
The company raised its guidance for the current fiscal year. Home Depot now expects sales will grow in the range of 5.2% to 6.0%, comparable sales will grow in the range of 4.1% to 4.9%, and EPS will grow in the range of 13% to 14%. There are consensus estimates that call for $5.27 in EPS on $87.06 billion in revenue.
At the end of the second quarter, the Company operated a total of 2,270 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs more than 300,000 associates.
Craig Menear, Chairman, CEO and President of Home Depot, commented on earnings:
We were pleased with this quarter’s results. We saw balanced growth across our business resulting from strength in the core of the store as well as the continued recovery of the U.S. housing market. I would like to thank our associates for their hard work and dedication.
On the books, Home Depot had $4.94 billion in cash and cash equivalents compared to $4.22 billion in the same period from the previous year, and $1.72 billion at the end of the previous fiscal year.
So far in 2015 Home Depot shares have outperformed the market; shares are up 15.3% year to date, while they were up a whopping 46% over the past 52 weeks.
Shares of Home Depot closed Monday relatively flat at $119.70 on its 52-week trading range of $83.29 to $120.75. Following the release of the earnings report shares were up 1.1% at $120.98 in early trading indications. The stock has a consensus analyst price target of $124.57.
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
