Home Depot earnings top estimates fueled by 9.8% jump in sales as consumers fix up homes
Home Depot on Tuesday reported quarterly earnings and revenue that beat analysts’ forecasts as customers spent more on home improvement projects.
The home improvement retailer’s shares fell less than 1% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
Earnings per share: $3.92 vs. $3.40 expectedRevenue: $36.82 billion vs. $35.01 billion expected
Net income for the fiscal third quarter ended Oct. 31 rose to $4.13 billion, or $3.92 per share, from $3.43 billion, or $3.18 per share, a year earlier. Analysts surveyed by Refinitiv were expecting earnings per share of $3.40.
Net sales rose 9.8% to $36.82 billion, topping expectations of $35.01 billion. Same-store sales climbed 6.1% in the quarter, beating StreetAccount estimates of 2.2%. The retailer faced tough comparisons to a year ago, when its same-store sales were soaring, thanks to consumers taking on more do-it-yourself projects.
A strong housing market has helped Home Depot and rival Lowe’s. Consumers have been investing more as home prices climb, rising nearly 20% compared with a year ago. Demand for materials has been rising from home professionals, helping to offset lower demand from do-it-yourself projects. Home Depot holds a larger share of the professional market, although Lowe’s is trying to win more of that business.
This quarter, Home Depot’s customer transactions fell by 5.5% to 428.2 million. But consumers were spending more when they did visit, raising average ticket by 12.9% to $82.38. Sales per square foot increased by 6.2% in quarter.