The company’s earnings include a $0.04 per share gain on the sale of a portion of the company’s equity in HD Supply Holdings. Without that one-time gain, Home Depot’s earnings would have come in short of the consensus estimate, and revenues were short as well. This will not make investors happy.
First-quarter same-store sales at all Home Depot locations rose 2.6% year over year and 3.3% in the United States.
The company reaffirmed 2014 guidance for sales growth of 4.8% and raised its EPS estimate from $4.38 to $4.42, which includes the $0.04 benefit the firm received in the first quarter. Home Depot said it intends to repurchase $3.75 billion in common stock in the next three quarters, which is in line with the full-year expectation to repurchase $5 billion in shares. The company did not indicate its repurchase total for the first quarter.
Competitor Lowe’s Inc. (NYSE: LOW) reports results Wednesday morning and is expected to post EPS of $0.60 on revenues of $13.86 billion for the quarter. Lowe’s stock has outperformed Home Depot’s over the past 12 months, up nearly 7%, compared with a slide of about 0.5% for Home Depot. Year to date, however, Lowe’s is down 8% and Home Depot is down 7%.
We noted in our earnings preview on the two stocks that the numbers for both stores are so close that it is essentially a coin toss picking one over the other. So look for Lowe’s shares to take a bit of a hit today as well.
Home Depot’s CEO said:
The first quarter was impacted by a slow start to the spring selling season. But we had solid results in non-weather impacted markets and expect our sales for the year to grow in line with the guidance we previously provided.
Shares were down about 2.7% in premarket trading, at $75.26 in a 52-week range of $72.21 to $83.20. Thomson Reuters had a consensus analyst price target of around $89.70 before the results were announced.
ALSO READ: The 10 Most Affordable Middle-Class Home Markets
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.