|Home Depot 2Q profit rises; cuts review outlook|
Home Depot net income rises in 2nd quarter; company trims revenue view
Tuesday August 17, 2010, 6:33 am
ATLANTA (AP) -- Modest sales increases helped boost Home Depot Inc.'s second-quarter net income 7 percent.
The No. 1 home-improvement retailer also trimmed its revenue forecast Tuesday but raised its earnings forecast to account for share repurchases.
Rival Lowe's Cos. cut revenue guidance a day earlier as shoppers remain cautious in the uncertain economy.
Quarterly net income rose to $1.19 billion, or 72 cents per share, from $1.12 billion, or 66 cents per share last year. Analysts polled by Thomson Reuters, on average, expected 71 cents per share.
Revenue rose 2 percent to $19.41 billion from $19.07 billion last year. Analysts predicted $19.59 billion.
Revenue at stores open at least one year rose 1.7 percent worldwide and 1 percent in the U.S., the third consecutive quarter of gains for the key measure.
Revenue at stores open at least a year is a key indicator of a retailer's performance because it excludes growth at stores that open or close during the year.
Home Depot trimmed its revenue outlook to a 2.6 percent increase, from a 3.5 percent rise. That implies revenue of $67.9 billion. Analysts expect revenue of $68.21 billion.
It now expects net income of $1.90, up from prior guidance of $1.88 per share. Analysts expect $1.89 per share.
Home Depot operates 2,244 retail stores in the U.S., Canada, Mexico and China.