A Residence Depot retailer in Livermore, California, US, on Thursday, Could 12, 2022. Residence Depot Inc. is scheduled to launch earnings figures on Could 17. Photographer:
David Paul Morris | Bloomberg | Getty Photos
Home Depot on Tuesday raised its full-year outlook after reporting robust quarterly earnings, fueled by the corporate’s strongest first-quarter gross sales on file. Shares of the corporate rose 4% in premarket buying and selling.
This is what Residence Depot reported in contrast with what Wall Avenue was anticipating, based mostly on a survey of analysts by Refinitiv:
- Earnings per share: $4.09 vs. $3.68 anticipated
- Income: $38.91 billion vs. $36.72 billion anticipated
The house enchancment retailer reported first-quarter internet revenue of $4.23 billion, or $4.09 per share, up from $4.15 billion, or $3.86 per share, a yr earlier. Analysts surveyed by Refinitiv had been anticipating the corporate to earn $3.68 per share.
Internet gross sales rose 3.8% to $38.91 billion, topping expectations of $36.72 billion. Identical-store gross sales elevated 2.2% within the quarter.
“The stable efficiency within the quarter is much more spectacular as we had been evaluating towards final yr’s historic progress and confronted a slower begin to spring this yr,” CEO Ted Decker mentioned in an announcement.
This marks Decker’s first quarter on the helm of the corporate. Decker, a longtime Residence Depot veteran, beforehand served as chief working officer and inherited the highest job at a tricky time for house enchancment.
Inflation retains climbing, which can lead shoppers to place off renovation tasks. Rising rates of interest might lead to a slowdown within the scorching housing market and delays to costly house enchancment plans. And plenty of shoppers spent the early days of the pandemic portray their partitions, shopping for new patio furnishings and taking good care of different do-it-yourself tasks that will not should be repeated for at the least a number of years.
However Tuesday’s outcomes present that customers are nonetheless prepared to spend cash on their properties, and the corporate is not anticipating the pattern to reverse.
For 2022, Residence Depot is now anticipating gross sales progress of about 3% and earnings per share progress within the mid-single digits. The corporate beforehand forecast “barely optimistic” gross sales progress and earnings per share progress within the low-single digits.