Will Home Depot Improve Upon Dismal Q1 Earnings?
The world’s largest home improvement chain Home Depot Inc (NYSE:HD) reported a somewhat disappointing first quarter ended on April 29.
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Though sales missed analysts’ expectations, profits came in line. The chain saw a slowdown in sales in April after the jump in sales earlier in the year due to unseasonably warmer weather. Sales for the quarter climbed 5.9 percent to $17.81 billion while analysts expected $17.96 billion.
Same-store sales at stores open at least a year were up 5.8 percent globally and 6.1 percent in the U.S. against analysts’ expectations of a global growth of 6.5 percent.
“The sales miss could be linked to a mediocre increase in the average transaction value, which suggests continued so-so sales in big-ticket merchandise categories and a heavy influence from seasonal products,” said Brian Sozzi, chief equities analyst at NBG Productions.
Net earnings were $1.04 billion (68 cents a share) compared to $812 million (50 cents a share) in the previous year. Excluding items, earnings were 65 cents a share and in line with street forecasts.
The company improved its outlook for the fiscal year and expects sales to grow 4.6 percent compared to 4 percent previously forecast, with earnings per share forecast at $2.90 per share against $2.79 earlier.