Home Depot 1Q Revenue Beats Expectations as Profit Falls Short
May 19 2020 - 6:46AM
Dow Jones News
By Matt Grossman
The Home Depot Inc. on Tuesday reported higher revenue year over
year for its first fiscal quarter, but its profit was reduced by
employee expenses related to the Covid-19 pandemic.
The Georgia-based chain of home-improvement stores recorded net
earnings in the period of $2.25 billion, or $2.08 a share, compared
with $2.51 billion, or $2.27 a share, for the same period a year
earlier.
Analysts polled by FactSet had expected net earnings of $2.30 a
share.
Home Depot's revenue was $28.26 billion, up from $26.38 billion
for the first quarter of 2019. Analysts were expecting revenue of
$27.56 billion.
Chief Executive Craig Menear said the company's business
responded effectively to the Covid-19 pandemic.
"The robust and flexible interconnected infrastructure that we
have invested in for over a decade allowed us to quickly adapt to
changing customer preferences and achieve strong sales performance
in the quarter," Mr. Menear said.
Granting hourly workers paid time off and weekly bonuses,
doubling overtime bonuses and extending dependent-care benefits
created an $850 million pretax expense, according to Home
Depot.
The company withdrew its guidance for the full fiscal year,
citing economic uncertainty from the pandemic.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
May 19, 2020 06:31 ET (10:31 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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