Home Depot Tops Views, Boosts Guidance
May 17 2016 - 7:19AM
Dow Jones News
By Anne Steele
Home Depot Inc. on Tuesday continued to buck larger retail
trends in reporting earnings well above expectations on strong
sales in a more favorable economy.
Shares, which have risen 12% over the past three months, added
1.2% premarket to $137.
For 2016, the company now expects earnings of $6.27 a share on
revenue growth of 6.3%, up from its previous guidance for earnings
of $6.12 to $6.18 a share on revenue growth of 5.1% to 6%.
Same-store sales are anticipated to grow about 4.9%.
The Atlanta-based company has continued to report rising sales,
setting it apart from other major retailers booking softer sales as
consumers dial back spending. Home Depot and Lowe's Cos. have
largely been insulated amid an improving housing market and
Americans' willingness to spend on home-improvement projects. And
with people moving more now thanks to appreciating home values and
low mortgage rates, they are also spending more to refurbish
dwellings.
During the most recent quarter, sales at Home Depot stores open
at least a year grew 6.5%.
"We were pleased with our stronger than expected start to the
year, driven by solid execution and broad-based growth across the
store," said Chief Executive Craig Menear, adding the quarter was
"marked by week-to-week demand spikes caused by weather
variability."
In all for the first quarter, Home Deport reported a profit of
$1.8 billion, or $1.44 a share, up from $1.58 billion, or $1.21, a
year earlier. Revenue climbed 9% to $22.76 billion.
Analysts polled by Thomson Reuters had projected adjusted
earnings of $1.36 a share on $22.39 billion in sales, according to
Thomson Reuters.
Lowe's is slated to report results Wednesday.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
May 17, 2016 07:04 ET (11:04 GMT)
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