Tuesday, May 28, 2024
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Home Depot shares up jump on earnings beat, raised sales outlook

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Home Depot on Tuesday reported quarterly earnings that beat analysts’ expectations and raised its sales outlook for the full year.

Shares of the company jumped more than 2 percent in premarket trading on the news.

Here’s what Home Depot reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $2.51 vs. $2.26 expected
  • Revenue: $26.30 billion vs. $26.26 billion expected
  • Same-store sales: up 4.8 percent globally vs. growth of 4.7 percent expected

Home improvement retailers Home Depot and Lowe’s are expected to have benefited this quarter from house price appreciation and spending on repairs and maintenance, Telsey Advisory Group analyst Joseph Feldman said in a research note. That’s in spite of slowing existing home sales, he said. Feldman also expects Home Depot may have had an opportunity to gain market share in the appliance category after Sears filed for bankruptcy protection and continues to shut stores.

Reaping the benefits of a warmer start to the summer, Home Depot far surpassed analysts’ expectations for the second quarter, with shoppers spending more at its stores per trip, and more customers visiting its stores overall. Analysts are looking to see if the company can keep the momentum going, especially as rival Lowe’s now has a new CEO and is shutting unprofitable stores to focus on growing sales.

Its shares are up about 12 percent from a year ago to trade around $183.

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