Categories AlphaGraphs, Earnings, Retail

Home Depot beats Q2 earnings estimates but revenues miss mark

The Home Depot Inc. (NYSE: HD) beat market expectations for earnings in the second quarter of 2019 but revenues came in shy of estimates. Shares were up 1.2% in premarket hours on Tuesday.

Total sales inched up 1.2% to $30.8 billion from the same period last year, but fell short of estimates of $31.05 billion. Total comparable sales grew 3% while comparable sales in the US grew 3.1%. Sales results reflect a shift in the fiscal calendar base due to 53 weeks of sales in 2018.

Home Depot beat earnings expectations for the second quarter of 2019 but revenue fell short of estimates

Net income remained flat year-over-year at $3.5 billion. Diluted EPS grew 3.9% to $3.17 versus last year, beating estimates of $3.09.  

Craig Menear, Chairman, CEO and President, said, “We are encouraged by the momentum we are seeing from our strategic investments and believe that the current health of the US consumer and a stable housing environment continue to support our business. That being said, lumber prices have declined significantly compared to last year, which impacts our sales growth. As a result, today we are updating our sales guidance to account primarily for continued lumber price deflation, as well as potential impacts to the US consumer arising from recently announced tariffs. We are reaffirming our earnings-per-share growth guidance for fiscal 2019.”

During the quarter, customer transactions remained flat year-over-year at 455.5 million. Average ticket grew 1.7% to $67.31 while sales per square foot rose 1.1% to $509.55 versus the prior-year period.    

At the end of the second quarter, Home Depot operated a total of 2,291 retail stores in all 50 states, the District of Columbia, Puerto Rico, US Virgin Islands, Guam, 10 Canadian provinces and Mexico. 

Home Depot updated its guidance for fiscal 2019, a 52-week year compared to fiscal 2018, a 53-week year, and now expects sales to grow approx. 2.3% and comp sales to grow approx. 4%. The company reaffirmed its outlook for EPS, which is expected to grow around 3.1% to $10.03.

Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Most Popular

Tyson Foods (TSN) Q1 2023 Earnings: Key financials and quarterly highlights

Tyson Foods Inc. (NYSE: TSN) reported first quarter 2023 earnings results today. Sales rose 2.5% year-over-year to $13.2 billion. Net income attributable to Tyson was $316 million, or $0.88 per

After weak start to 2023, Apple (AAPL) sees some bright spots

Apple Inc. (NASDAQ: AAPL) this week reported its first revenue decline in more than three years, even as the high inflation continues to squeeze customers’ spending power. Sales of the

Earnings: Qualcomm (QCOM) Q1 profit falls on lower revenues

Chipmaker Qualcomm, Inc. (NASDAQ: QCOM) has reported lower earnings and revenues for the first quarter of 2023. The company also provided guidance for the second quarter of 2023. At $9.5

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top