Retail

Home Depot Tops Q3 Earnings With Strong Outlook

Thinkstock

Home Depot Inc. (NYSE: HD) reported its fiscal third-quarter financial results before the markets opened on Tuesday. The company posted $1.35 in earnings per share (EPS) on revenue of $21.8 billion. That compared to Thomson Reuters consensus estimates of $1.32 in EPS on $21.76 billion in revenue. In the same period of the previous year, the retailer posted EPS of $1.11 and $20.52 billion in revenue.

Comparable store sales for the third quarter of fiscal 2015 were positive 5.1%, and comp sales for U.S. stores were positive 7.3%.

At the end of the third quarter, Home Depot operated a total of 2,273 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico.

In terms of guidance, the company expects EPS to grow by roughly 14% to $5.36, assuming foreign exchange rates remain at current levels. Also it expects sales growth of approximately 5.7%, with comps of approximately 4.9%. The consensus estimates for the fiscal full year call for $5.31 in EPS on $87.74 billion in revenue.

Craig Menear, chairman, CEO and president of Home Depot, commented on earnings:

During the quarter, we saw broad-based growth across our geographies and product categories, led by growth in transactions from both our DIY and Pro customers. I would like to thank our associates for their hard work and dedication to our customers.

On the books, the company had $3.04 billion in cash and cash equivalents at the end of the quarter, compared to $2.18 billion at the end of the same period from the previous year.

Shares of Home Depot closed Monday up 0.7% at $120.84, with a consensus analyst price target of $131.48 and a 52-week trading range of $92.17 to $126.12. Following the release of the earnings report, shares were up 2.7% at $124.14 in early trading indications on Tuesday.

ALSO READ: Major Changes Seen in Warren Buffett’s Stock Holdings

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Get started right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.