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Home Depot (HD) Tuesday announced much better than expected results for the third quarter, as the home improvement chain also slightly exceeded its sales outlook. The home improvement chain has also raised its forecasts for the whole year. Home Depot's shares initially rose early Tuesday but opened lower.
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Home Depot Gains
estimatesHome Depot's earnings per share increased 23% to $ 2.27 a share on revenue growth of nearly 5% to $ 26.24 billion.
ResultsHome Depot earnings jumped 36% to $ 2.51 a share, matching the pace of the second quarter, the fourth consecutive quarter of accelerated growth. Revenues increased 5.1% to $ 26.30 billion.
Same store sales increased 4.8%. The United States climbed 5.4%. Growth in the United States slowed during the quarter, rising 7.5% in August, 4.7% in September and 4.2% in October. Home Depot said hurricanes helped boost sales in August and weigh on demand in September and October.
Perspective: Home Depot is forecasting annual EPS of $ 9.75, up 34%. He increased his revenue growth forecast from 7% to 7.2%. She predicts a gain of 5.5% in comp. Analysts were forecasting a profit of $ 9.56 per share for Home Depot over the entire year, although that is before the record of 24 cents in the third quarter. Analysts expected a gain of 7.2% to $ 108.215 billion.
Home Depot stock
Shares of the Dow Jones component rose 3% early in the stock market today, but reversed and are trading down 1.9% to 175.79 shortly after opening. Home Depot's shares remain below their 50- and 200-day moving averages after breaking both key support measures throughout the month of October, while the market is widely sold.
The slowdown in the real estate market weighed on Home Depot as housing starts, existing home sales and new home sales have recently declined.
Stocks are now well off their recent high of 215.43, reached in mid-September. The relative strength of the stock is down and Home Depot now has a relative strength rating of 67.
Home Depot Rival Becomes Smaller
Lowe & # 39; s The graph (LOW) is similar. The rival home improvement retailer hit a new high of 117.70, but has since declined beyond its 50-day lineup and is now trying to stay above its long-term moving average.
Earlier in the month, Lowe's announced the closing of 20 underperforming stores in the United States and 31 stores in Canada.
Lowe's, who will report next week, also announced earlier this year that he was closing Orchard Supply Hardware stores.
The Lowe stock fell 1.8% on Tuesday.
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