Home Depot Earnings: Investors CHEER Double Digit Profit Growth

S&P 500 (NYSE:SPY) component Home Depot Inc. (NYSE:HD) reported its results for the second 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 Inc. Earnings Cheat Sheet

Results: Net income for Home Depot Inc. rose to $1.53 billion ($1.01 per share) vs. $1.36 billion (86 cents per share) in the same quarter a year earlier. This marks a rise of 12.4% from the year-earlier quarter.

Revenue: Rose 1.7% to $20.57 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Home Depot Inc. beat the mean analyst estimate of 98 cents per share. It beat the average revenue estimate of $17.81 billion.

Quoting Management: “As expected, second-quarter sales reflected the pull forward of seasonal activity into the first quarter. But we saw continued demand for core products and delivered second-quarter earnings above our expectations,” said Frank Blake, chairman & CEO. “I would like to thank our associates for their hard work and commitment to our customers.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 27.5% and in the fourth quarter of the last fiscal year, the figure rose 31.9%.

Revenue has risen for the last four quarters. Revenue increased 5.9% to $17.81 billion in the first quarter. The figure rose 5.9% in the fourth quarter of the last fiscal year from the year earlier and climbed 4.4% in the third quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after being in line with expectations in the first quarter with net income of 65 cents per share.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 68 cents a share to 70 cents over the last ninety days. The average estimate for the fiscal year is $2.91 per share, a rise from $2.87 ninety days ago.

Competitors to Watch: Lowe’s Companies, Inc., Builders FirstSource, Inc., Lumber Liquidators Hldgs., Inc., Kingfisher plc, Bricorama SA, and Home Product Center Public Co Ltd.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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