Home Depot Inc. Earnings: Exceeds Forecasts with Boost of Profit Rise
S&P 500 (NYSE:SPY) component Home Depot Inc. (NYSE:HD) reported net income above Wall Street’s expectations for the fourth quarter. The Home Depot is a home improvement retailer that sells an assortment of building materials, home improvement and lawn and garden products.
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Home Depot Earnings Cheat Sheet for the Fourth Quarter
Results: Net income for Home Depot Inc. rose to $774 million (50 cents per share) vs. $587 million (36 cents per share) in the same quarter a year earlier. This marks a rise of 31.9% from the year-earlier quarter.
Revenue: Rose 5.9% to $16.01 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Home Depot Inc. beat the mean analyst estimate of 42 cents per share. It beat the average revenue estimate of $15.5 billion.
Quoting Management: “We had a strong finish to 2011, and with favorable weather, our business delivered results that exceeded our expectations,” said Frank Blake, chairman & CEO. “I’d like to thank our associates for their hard work and dedication.”
The company has now seen its net income increase for three consecutive quarters. In the third quarter, net income rose 12% and in the second quarter, the figure rose 14.3%.
The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by one cent in the third quarter, by 4 cents in the second quarter, and by one cent in the first quarter.
Revenue has now gone up in each of the last three quarters. In the third quarter, revenue rose 4.4% to $17.33 billion while the figure rose 4.2% in the second quarter from the year earlier.
Looking Forward: The average estimate for the first quarter of the next fiscal year is steady at 60 cents a share. The average estimate for the fiscal year is $2.39 per share, falling from $2.40 thirty days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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