Home Depot on Tuesday crushed Wall Street’s earnings estimates as consumers’ splurging on their homes lingers more than a year into the coronavirus pandemic.
Shares of Home Depot rose more than 2% in premarket trading. The stock has risen more than 20% this year, giving it a market value of $344 billion as of Monday’s close.
Here’s what the company reported for the three months ended May 2 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $3.86 vs. $3.08 expected
- Revenue: $37.5 billion vs. $34.96 billion expected
The retailer reported fiscal first-quarter net income of $4.15 billion, or $3.86 per share, up from $2.25 billion, or $2.08 per share, a year earlier. Analysts surveyed by Refinitiv were expecting earnings per share of $3.08.
Net sales rose 32.7% to $37.5 billion, beating expectations of $34.96 billion. Global same-store sales surged 31% for the quarter.
This is the first quarter that the retailer is facing year-over-year comparisons to its business during lockdowns. A year ago, its first-quarter same-store sales grew 6.4%. Home Depot was classified as an essential retailer, accelerating sales for the company’s do-it-yourself supplies as consumers tackled new projects while stuck at home.
A booming housing market has also helped fuel growth, although soaring lumber prices and higher interest rates have dampened sales of newly built homes in recent months.
For the company’s first quarter this year, it reported 447.2 million customer transactions, up 19.3% from a year earlier. Consumers were also spending more during their visits. Average ticket rose 10.3% to $82.37.
Home Depot hasn’t released an outlook for fiscal 2021. Last quarter, it cited the uncertainty caused by the pandemic.
“Fiscal 2021 is off to a strong start as we continue to build on the momentum from our strategic investments and effectively manage the unprecedented demand for home improvement projects,” CEO Craig Menear said in a statement.
Source: Business - cnbc.com
