Home Depot beats on earnings, same-store sales disappoint
By Iain Gilbert
Date: Tuesday 21 May 2019
(Sharecast News) - US retailer Home Depot's first-quarter earnings beat analysts' expectations on Tuesday as customers spent more in single transactions during the quarter ended 5 May.
Home Depot's net income rose 4% to $2.5bn, or $2.27 on a per share basis - ahead of the $2.18 predicted on the Street.
Revenues climbed 5.7% to $26.38bn, coming in slightly above consensus estimates of $26.37bn.
However, sales at stores open at least 12 months rose 2.5% across the group, short of the 4.3% expected, and 3% in the US.
Chief executive and president Craig Menear said: "We were pleased with the underlying performance of the core business despite unfavourable weather in February and significant deflation in lumber prices compared to a year ago."
Customer transactions increased 3.8% during the quarter, while average spend ticked up 2% and sales per square foot improved 5.6%.
Home Depot reiterated its full-year guidance, with earnings expected to rise 3.1% to $10.03 per share and revenues tapped to increase 3.3%. Same-store sales are expected to grow 5%.
As of 1335 BST, Home Depot shares had inched backwards 0.31% in pre-market trade to $190.35 each.
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