A surging Home Depot Q3 beats Street; raises full-year outlook
Repairs resulting from hurricanes and other natural disasters helped Home Depot beat estimates in its third quarter, and also caused the retailer to raise its outlook for the year.
Net earnings increased 10.0% to $2.2 billion, or $1.84 per share, for the quarter, ended Oct. 29. Analysts had expected earnings per share of $1.81.
Revenue rose 8.1% to $25 billion, topping estimates. Shoppers' average ticket was 5% higher, and customer transactions rose by 2.5%. Total same-store sales rose 7.9%, also more than expected.
The retailer said hurricanes and other disasters boosted comparable store sales growth by about $282 million.
"The revenue benefits from rebuilding activity are helpful but, for Home Depot, they are the icing on the cake of an already strong business which has been on an upward trajectory for many years," commented Neil Saunders, managing director of GlobalData Retail. "Fortunately, we see few signs that this direction of travel will change over the next fiscal and beyond."
Based on its year-to-date performance, underlying strength of the core business, and projected hurricane recovery sales, the company lifted its fiscal 2017 sales growth guidance and now expects sales will be up approximately 6.3% and comp sales will be up approximately 6.5%.
"The short-term uplift from disaster-related spending, robust underlying demand, a good seasonal holiday offer, gathering momentum with pros, and strong traction online, all bode well for Home Depot," said Saunders. "Looking ahead, we expect the business to end this fiscal year on a high." For more, click here.
The company increased its store count by one unit in the third quarter, bringing its footprint to a total of 2,283.
Net earnings increased 10.0% to $2.2 billion, or $1.84 per share, for the quarter, ended Oct. 29. Analysts had expected earnings per share of $1.81.
Revenue rose 8.1% to $25 billion, topping estimates. Shoppers' average ticket was 5% higher, and customer transactions rose by 2.5%. Total same-store sales rose 7.9%, also more than expected.
The retailer said hurricanes and other disasters boosted comparable store sales growth by about $282 million.
"The revenue benefits from rebuilding activity are helpful but, for Home Depot, they are the icing on the cake of an already strong business which has been on an upward trajectory for many years," commented Neil Saunders, managing director of GlobalData Retail. "Fortunately, we see few signs that this direction of travel will change over the next fiscal and beyond."
Based on its year-to-date performance, underlying strength of the core business, and projected hurricane recovery sales, the company lifted its fiscal 2017 sales growth guidance and now expects sales will be up approximately 6.3% and comp sales will be up approximately 6.5%.
"The short-term uplift from disaster-related spending, robust underlying demand, a good seasonal holiday offer, gathering momentum with pros, and strong traction online, all bode well for Home Depot," said Saunders. "Looking ahead, we expect the business to end this fiscal year on a high." For more, click here.
The company increased its store count by one unit in the third quarter, bringing its footprint to a total of 2,283.