Housing
Home Depot Earnings Overcome Effects of Hurricane Sandy, Cold Weather
Published:
Last Updated:
Home Depot’s revised its 2013 guidance higher following the better-than-expected results. Now the company expects revenue growth of 2.8%, up from 2% previously; same-store sales growth of 4%, up from 3%; and diluted EPS of $3.52 for the full year, up from $3.37. Consensus estimates called for EPS of $3.54 on revenues of $77.01 billion.
The company’s guidance is a bit shy of consensus expectations, but Home Depot is historically cautious and typically revises its guidance periodically as the year progresses.
Home Depot’s CEO said:
In the first quarter, we saw less favorable weather compared to last year, but we continue to see benefit from a recovering housing market that drove a stronger-than-expected start to the year for our business.
U.S. same-store sales for the quarter rose 4.8% year-over-year, and the rise for all stores was 4.3%. The totals have been adjusted to exclude a 14th week in the comparable quarter in 2012.
Analysts had been concerned that the colder weather during the quarter would have a negative effect on Home Depot’s sales and profits. The CEO did not mention any positive impact from rebuilding in the Northeast following Hurricane Sandy, instead calling out a “recovering housing market” as a driver for the first quarter. That impact should have a longer-lasting effect on Home Depot’s business, and investors are quite likely to run the share price higher today, anticipating an even better year ahead.
Shares are up about 4.2% in premarket trading, at $80.00, which would mark a new 52-week high. The current 52-week range is $46.37 to $78.54. Thomson Reuters had a consensus analyst price target of around $75.70 before today’s results were announced.
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.