Home Depot on Tuesday raised its full-year outlook after reporting strong quarterly earnings driven by the company’s strongest first-quarter sales on record. The company’s shares are up 4% in premarket trading.
Here’s what Home Depot reported, compared to Wall Street’s expectations, based on a survey of analysts by Refinitiv:
- Earnings per share: $4.09 versus $3.68 expected
- Revenue: $38.91 billion versus $36.72 billion expected
The home improvement retailer reported net income of $4.23 billion, or $4.09 per share, for the first quarter, up from $4.15 billion, or $3.86 per share, a year earlier. Analysts polled by Refinitiv expected the company to earn $3.68 per share.
Net sales rose 3.8% to $38.91 billion, beating expectations of $36.72 billion. Same-store sales increased 2.2% for the quarter.
“The solid performance for the quarter is even more impressive as we compared last year’s historical growth and faced a slower start to spring this year,” CEO Ted Decker said in a statement.
This is Decker’s first quarter at the helm of the company. Decker, a longtime Home Depot veteran, previously served as chief operating officer, taking the top job during a difficult time for home improvement.
Inflation continues to rise, which may prompt consumers to delay renovation projects. Rising interest rates could slow the hot housing market and delay expensive home improvement plans. And many consumers spent the first few days of the pandemic painting their walls, buying new patio furniture, and taking care of other do-it-yourself projects that won’t need to be repeated for at least a couple of years.
However, Tuesday’s results show that consumers are still willing to spend money on their homes and the company doesn’t expect the trend to reverse.
For 2022, Home Depot now expects revenue growth of about 3% and earnings per share growth in the mid-single digits. The company previously forecast “slightly positive” revenue growth and earnings per share growth in the low single digits.
Read the full report here.
https://www.cnbc.com/2022/05/17/home-depot-hd-q1-2022-earnings.html Home Depot (HD) Q1 2022 results