|Home Depot earnings beat, same-store sales fall short|
Here’s how the company did, compared to what Wall Street expected, according to Refinitiv consensus estimates:
Earnings per share: $2.27, vs. $2.18 expected
Revenue: $26.381 billion, vs. $26.378 expected
Sales at stores open at least 12 months rose 2.5% on a global basis and were up 3.0% in the U.S. This was shy of the 4.2% estimate from Refinitiv, but it wasn’t immediately clear if the numbers were comparable due to an extra week in the year-ago quarter.
In the quarter ended May 5, net income rose to $2.5 billion, or $2.27 a share, from $2.4 billion, or $2.08 a diluted share, a year ago. Analysts were predicting the company would earn $2.18 a share.
Revenue climbed 5.7% to $26.381 billion, slightly above Refinitiv’s consensus estimate of $26.378 billion.
“We were pleased with the underlying performance of the core business despite unfavorable weather in February and significant deflation in lumber prices compared to a year ago,” Home Depot CEO and president Craig Menear said in a company release.
Home Depot said customer transactions were up 3.8% during the quarter, while the average shopper’s ticket increased 2.0%, and sales per square foot were up 5.6%.
The company reaffirmed its guidance for fiscal 2019, which estimates earnings will rise 3.1% to $10.03 per share. Same-store sales are expected to grow 5%, while revenue increases 3.3%.