Home Depot breezed past all expectations in the third quarter and raised its annual profit expectations again as Americans plow money into their homes, even with hints that the housing market is cooling.
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Comparable-store sales, a key indicator of a retailer’s health, rose 4.8 percent, but it jumped 5.4 percent in the U.S., its dominant market.
Home Depot on Tuesday issued new profit projections, saying that it now expects -year earnings to climb about 33.8 percent, or $9.75 per share. Its previous outlook was for a 29.2 percent increase. Analysts surveyed by FactSet expect earnings of $9.56 per share.
For the period ended Oct. 28, the Atlanta company earned $2.87 billion, or $2.51 per share, far exceeding per-share projections for $2.27 on Wall Street, according to a survey of analysts polled by Zacks Investment Research.
A year earlier Home Depot earned $2.17 billion, or $1.84 per share.
Revenue climbed to $26.3 billion from $25.03 billion, beating Wall Street’s $26.21 billion prediction.
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Revenue is now expected to rise approximately 7.2 percent, up slightly from its prior forecast for an increase of about 7 percent. Comparable-store sales are now anticipated to climb approximately 5.5 percent. Home Depot previous outlook was for the metric to increase about 5.3 percent.
Shares of The Home Depot Inc. rose more than 2 percent before the opening bell.
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Elements of this story were generated by Automated Insights using data from Zacks Investment Research. Access a Zacks stock report on HD at https://www.zacks.com/ap/HD
