Home Depot on Tuesday reported higher second-quarter earnings and revenue that beat analysts’ expectations as the company cited continued strength in demand for home improvement projects.
The Atlanta-based company stood by its forecast for total and comparable sales to grow about 3% for the year, with comparable sales to be slower in the second half of the year.
Same store sales rose 5.8% in the quarter, topping analyst expectations for growth of 4.9%, according to FactSet. Home Depot said transactions slipped during the period, while the average ticket rose, primarily as a result of inflation.
- Earnings per share: $5.05 vs. $4.94 expected
- Revenue: $43.79 billion vs. $43.36 billion expected
Home Depot continued its streak of beating analyst forecasts with record quarterly results for Q2. The home improvement retailer has topped quarterly earnings estimates since the first quarter of 2020, and hasn't missed revenue predictions since Q3 2019. Home Depot stock is down about 25% for the year, and its shares are up about 5% in morning trading.
The second quarter is seasonally the strongest for wholesale building retailers as home projects pick up in the summer months. Wall Street predicts moderate earnings growth for the two companies. But analysts note concerns over a weakening macro backdrop, slowing “do-it-yourself” demand and general retail weakness.
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