Retail

Home Depot Q3 Earnings and Sales Rise

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Home Depot Inc. (NYSE: HD) reported its fiscal third-quarter financial results on Tuesday before the markets opened. The company said that it had $1.60 in earnings per share (EPS) and $23.15 billion in revenue. The consensus estimates from Thomson Reuters had called for $1.58 in EPS and revenue of $23.05 billion. In the same period of last year, the specialty retailer posted EPS of $1.36 and $21.82 billion in revenue.

Comparable store sales for the third quarter of fiscal 2016 were positive 5.5%, and comp sales for U.S. stores were positive 5.9%.

In terms of guidance for the 2016 full year, the company expects to see sales up 6.3% and comparable sales up roughly 4.9%, with EPS up 15.9% to $6.33. The consensus estimates are $6.33 in EPS and $94.16 billion in revenue.

At the end of the third quarter, the Company operated a total of 2,276 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico.

On the books, Home Depot cash and cash equivalents totaled $3.59 billion at the end of the quarter, up from $3.04 billion in the same period from last year.

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

We experienced balanced sales growth in the quarter driven by an increase in both ticket and transactions, and our continued focus on productivity drove double-digit earnings-per-share growth. I would like to thank our associates and suppliers for their hard work and dedication to our customers throughout the quarter, and particularly in the face of Hurricane Matthew and the flooding in Louisiana.

Shares of Home Depot closed Monday at $127.67, with a consensus analyst price target of $147.88 and a 52-week trading range of $109.62 to $139.00. Following the release of the report, the stock was up over 1% at $129.15 in early trading indications Tuesday.

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