Home Depot on Tuesday reported fiscal first-quarter earnings that beat analysts' expectations, as shoppers were spending more in their stores, despite a start in the US
Home Depositor Shares were up less than a percent in premarket trade following the release.
Here's how the company did, as expected, according to Refinitive 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 review was made in the year-ago quarter ago.
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 $ 2.1
Revenue climbed 5.7% to $ 26,381 billion, slightly above the refi- nitive consensus estimate of $ 26,378 billion.
"Home Depot CEO and president Craig Menear said in a company release."
Home Depot said customer "We were pleased with the underlying performance of the core business despite unfavorable weather in February and significant deflation in lumber compared to one year ago." transactions 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%.
Retailers like Home Depot and rival Lowe's are well positioned in the current environment, Oppenheimer's Brian Nagel said in a note to clients on Monday.
"In our view, a recent, substantial slide in mortgage rates should lead to a steady re-strengthening in key housing metrics, then supporting improved sales and, perhaps more importantly, undermining meaningfully the still negative market within multiples within the space, "Nail said.
As of Monday's market close, Home Depos shares, which have a market value of $ 210.6 billion, are up more than 11% this year and up less than a percent over the past 12 months. Lowe's, is up 18% since January and 24% over the past 12 months. It has a market cap of $ 86.9 billion.
Clarification: It's unclear how Home Depot's same-store sales compare with its results on a 52-week basis. Last year, its fiscal first quarter had 53 weeks. An earlier headline said same-store sales fell short.
Correction: Last quarter, Home Depot's forecast was viewed as disappointing. An earlier story incorrectly said the company cut its forecast.