A man shops for supplies at a Home Depot store in Alhambra, California. (Photo by FREDERIC J. BROWN/AFP via Getty Images)
Home Depot
reported second-quarter earnings $5.05 a share, topping analysts’ estimates, and reaffirmed its 2022 guidance.
Shares of
Home Depot
(ticker: HD) fell 1.5% in premarket trading to $310. Coming into Tuesday, the stock has fallen 24.2% this year.
Sales in the quarter were $43.8 billion, up 6.5% from a year earlier.
Analysts surveyed by FactSet had expected the largest home-improvement retailer to report quarterly earnings of $4.95 a share on sales of $43.4 billion.
A year earlier, Home Depot earned $4.53 a share on sales of $41.1 billion.
Same-store sales rose 5.8%, ahead of estimates of 4.9%. U.S. same-store sales jumped 5.4% despite a slowdown in the housing market.
“In the second quarter, we delivered the highest quarterly sales and earnings in our company’s history,” said Ted Decker, chief executive and president, in a press release. “Our performance reflects continued strength in demand for home-improvement projects.”
Home Depot on Tuesday reaffirmed it expects total sales growth and comparable-sales growth of about 3% for the fiscal year. It expects per-share earnings growth in the mid-single digits.
Citi analyst Steven Zaccone last week retained his Buy rating and $348 price target on Home Depot, saying that while it faces the same issues as rival
Lowe’s
(LOW) — higher inflation and a decline in home prices, among other things — he believes Home Depot can offer better-than-expected earnings and comparable sales, saying its professional business is “driving the near-term strength.”
Write to Joe Woelfel at joseph.woelfel@barrons.com
