The Home Depot Earnings: Here’s Why Investors are Happy Now

The Home Depot, Inc. (NYSE:HD) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.86%.

The Home Depot, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 22.77% to $1.24 in the quarter versus EPS of $1.01 in the year-earlier quarter.

Revenue: Rose 9.49% to $22.52 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Home Depot, Inc. reported adjusted EPS income of $1.24 per share. By that measure, the company beat the mean analyst estimate of $1.21. It beat the average revenue estimate of $21.8 billion.

Quoting Management: “The second quarter results exceeded our expectations as our business benefited from a rebound in our seasonal categories, continued strength in the core of the store and the recovering housing market in the U.S.,” said Frank Blake , chairman & CEO. “Our associates did an outstanding job of responding to the strong increased demand. I would like to thank them for their hard work and dedication.”

Key Stats (on next page)…

Revenue increased 17.77% from $19.12 billion in the previous quarter. EPS increased 49.4% from $0.83 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.87 to a profit $0.88. For the current year, the average estimate has moved up from a profit of $3.59 to a profit of $3.64 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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