S&P 500 (NYSE:SPY) component Home Depot Inc. (NYSE:HD) reported net income above Wall Street’s expectations for the third quarter. The Home Depot is a home improvement retailer that sells an assortment of building materials, home improvement and lawn and garden products.
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Home Depot Inc. Earnings Cheat Sheet
Results: Net income for Home Depot Inc. rose to $947 million (63 cents per share) vs. $934 million (60 cents per share) in the same quarter a year earlier. This marks a rise of 1.4% from the year-earlier quarter.
Revenue: Rose 4.5% to $18.1 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Home Depot Inc. reported adjusted net income of 74 cents per share. By that measure, the company beat the mean estimate of 70 cents per share. Analysts were expecting revenue of $17.81 billion.
Quoting Management: “Our third-quarter results were better than we expected and reflected, in part, what we believe is the start of the path toward the healing of the housing market,” said Frank Blake, chairman & CEO. “I particularly want to thank all of our associates who are helping the communities impacted by Hurricane Sandy. They are working under difficult circumstances, often with their own lives and homes disrupted by the storm, and their efforts exemplify our core values.”
The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 12.4% and in the first quarter, the figure rose 27.5%.
Revenue has risen for the last four quarters. Revenue increased 1.7% to $20.57 billion in the second quarter. The figure rose 5.9% in the first quarter from the year earlier and climbed 5.9% in the fourth quarter of the last fiscal year from the year-ago quarter.
The company has beaten estiamtes for two quarters in a row. In the second quarter, it topped expectations with net income of $1.01 versus a mean estimate of net income of 97 cents per share.
Looking Forward: The average estimate for the fourth quarter remains unchanged at 60 cents a share. For the fiscal year, the average estimate has moved up from $2.95 a share to $2.97 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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