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Home Depot’s Q1 results surpass expectations

Home Depot (NYSE: HD) reported better-than-expected revenue and earnings for the first quarter of 2019. Shares were up 0.55% in premarket hours on Tuesday.

Total sales grew 5.7% year-over-year to $26.4 billion. Comparable sales were up 2.5%, with comp sales in the US up 3%. In the first quarter, the difference between the sales growth and comparable sales performance reflects a shift in the calendar base due to 53 weeks of sales in fiscal 2018.

Home Depot reports first quarter 2019 earnings results

Net earnings grew 4.5% to $2.5 billion, while EPS grew 9.1% to $2.27 compared to the prior-year period.

Customer transactions saw a growth of 3.8% year-over-year to 390 million. Average ticket grew 2% to $67.31. Sales per square foot rose 5.6% to $435.18.  

CEO Craig Menear said, “We were pleased with the underlying performance of the core business despite unfavorable weather in February and significant deflation in lumber prices compared to a year ago. Looking ahead, we remain excited about the momentum we are seeing with our strategic investments. As a result of these initiatives, and the current macroeconomic and housing backdrop, today we are reaffirming our sales and earnings guidance for fiscal 2019.”

For fiscal year 2019, Home Depot expects sales growth of approx. 3.3% and comparable sales growth of approx. 5%. EPS is expected to grow around 3.1% to $10.03.

Home Depot’s competitor Lowe’s Companies (NASDAQ: LOW) is scheduled to report first quarter results on Wednesday, May 22.

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