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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.”
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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