Home Depot beats quarterly comparable sales estimates
Net earnings increased to $5.05 per share in the quarter
Market expert warns end of earnings season could ignite short selling
Strategic Wealth Partners CEO Mark Tepper, NFJ Investment Group portfolio manager Burns McKinney and Infrastructure Capital Management CEO Jay Hatfield analyze the recent market rally as inflation persists on 'Mornings with Maria.'
Home Depot Inc. on Tuesday reported quarterly comparable sales above Wall Street estimates on steady demand for home-improvement goods from builders and handymen.
Analysts have said demand from home-improvement professionals has been strong, even as do-it-yourself customers are reining in their spending, due to a healthy pipeline of remodeling work.
Around 40% to 45% of Home Depot's customers are professionals, compared with just 20% to 25% for smaller rival Lowe's Cos Inc LOW.N, according to estimates from several brokerages.
Home Depot's comparable sales rose 5.8% for the second quarter, while analysts had expected a 4.9% growth, according to IBES data from Refinitiv.
WALMART EXPECTS SMALLER PROFIT DROP AS DISCOUNTS DRIVE DEMAND
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HD | THE HOME DEPOT INC. | 426.96 | -2.17 | -0.51% |
Net sales for the largest U.S. home improvement chain climbed 6.5% to a $43.79 billion, compared with estimates of $43.36 billion.
Higher product prices drove average spending per transaction up more than 9%, even as customer transactions at its stores dropped 3%, helping the company record its highest ever quarterly sales and earnings.
CLICK HERE TO GET FOX BUSINESS ON THE GO
Net earnings increased to $5.17 billion, or $5.05 per share, for the quarter ended July 31, from $4.81 billion, or $4.53 per share, a year earlier. Analysts were expecting $4.94 per share.
Home Depot's shares fell 1.5% to $310 in premarket trading as it maintained its outlook for fiscal 2022.