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Home Depot
Inc.
High Definition -0.67%
announced earnings for the third quarter up sharply from the previous year and heightening his forecast for the entire year, the retailer enjoying sustained demand in the home improvement sector.
However, the company said it would continue to face tougher comparisons due to last year's hurricanes, which led to increased sales associated with the reconstruction of storm-damaged areas.
Home Depot's profit increased 32% to $ 2.87 billion, or $ 2.51 per share. Analysts surveyed by Refinitiv were expecting earnings per share of $ 2.26. The retail income tax provision decreased by approximately $ 489 million from the prior year, which contributed to higher earnings.
Net sales increased 5.1% to $ 26.3 billion, driven by higher customer transactions and higher average price per customer transaction. Analysts surveyed by Refinitiv were expecting $ 26.26 billion. Same store sales revenue was up 4.8%, compared to 4.7% expected by analysts polled by Consensus Metrix.
CEO Craig Menear said Tuesday when the company's call for results that "the home improvement environment is solid", but pointed out that comparisons for the US Gulf region were more difficult this quarter due to Hurricane Harvey, the storm that hit Texas in 2017.
"While cyclones Florence and Michael were hit by this quarter, the scale of the devastation was more compact geographically," he said.
Home Depot CFO Carol Tomé said the company had recorded about $ 282 million in hurricane-related sales in the third quarter of last year, up from about $ 150 million this year. In the fourth quarter, the company will compete with about $ 380 million in hurricane sales in the fourth quarter of last year, she said.
"Although we expect hurricane-related sales in the fourth quarter, we are not forecasting hurricane-related sales of $ 400 million," she said.
Home Depot said it expects full-year sales to grow about 7.2 percent from the previous year, or 5.5 percent excluding the 53rd week of the year. Exercise in progress. The company expected a sales increase of about 7%, or 5.3% extra week off. The company expects earnings per share of $ 9.75 per year, up from $ 9.42 previously.
Higher earnings expectations include stronger activity around share buybacks. Home Depot announced Tuesday that it was now hoping to buy back about $ 8 billion of stock for the year. The company expected to buy back $ 6 billion worth of shares.
Home Depot shares, down 7% year-on-year, fell 1.7% late Monday morning.
Write to Allison Prang at [email protected]
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