Home Depot raises its forecasts after beating profits

Home Depot Inc. reported third-quarter profits up sharply from the same quarter last year, which allowed for a further increase in sales and earnings guidance for the year.

The home improvement chain posted a net profit of $ 2.87 billion, up 32%. Earnings per share amounted to $ 2.51 against $ 1.84. Analysts surveyed by Refinitiv were expecting earnings per share of $ 2.26.

The income tax burden of the retailer has dropped significantly, which has boosted earnings.

Net sales increased 5.1% to $ 26.3 billion. Analysts surveyed by Refinitiv were expecting $ 26.26 billion.

Same store sales increased 4.8%. Analysts surveyed by Consensus Metrix were expecting an increase of 4.7%.

Home Depot said it is now expecting a 7.2% sales increase over the entire year. It also expects that for the comparable 52-week period, sales per store will increase by approximately 5.5%. The 2018 fiscal year has 53 weeks. The company also said it is now expecting earnings per share of $ 9.75.

Analysts surveyed by Refinitiv expect GAAP earnings of $ 9.56 per share and adjusted earnings of $ 9.55 per share.

When it announced its second-quarter financial results in August, Home Depot said it expects sales to increase, including that of the 53rd week, by about 7% and that it's expected to increase. at the same 52-week period, comparable sales are expected to increase by approximately 5.3%. He also said that he was counting on earnings per share of $ 9.42.

The higher earnings forecast takes into account more share buybacks than the company mentioned in its previous forecast. Home Depot announced Tuesday that it was now hoping to buy back about $ 8 billion of stock for the year. When she announced her second quarter results, she said her earnings guidance for the year included $ 6 billion in redemptions.

Home Depot shares, down 5.3% year-over-year, were up 2.3% pre-market.

Write to Allison Prang at the address [email protected]