Home Depot raises guidance for second time this year
Home Depot upped its sales and profits guidance for a second time this year on Tuesday thanks to a robust US housing market that has led many Americans to pour money back into their homes.
Dow Jones I.A.
43,297.03
04:30 15/10/20
Home Depot Inc.
$396.14
10:49 24/12/24
The biggest DIY chain in the world now expects earnings for its current trading year to come in at roughly $9.75 per share, up from the $9.42 it had projected three months ago.
Management also stuck to a previous forecast for like-for-like sales growth of 5.5% year-on-year, up from the 5.2% originally projected, which it expected would help lift overall sales growth to 7.2%.
Chairman and chief executive Craig Menear, said: "We believe this is a testament to the overall strength of demand in the home improvement market."
For the quarter, Home Depot saw sales rise 5.1% to $26.3bn, topping Wall Street expectations of $26.2bn, thanks, in part, to average transaction value increasing 3.6% to $65.11.
Net income jumped almost a third to $2.8bn, or $2.51 per share, thanks to a lower corporate tax rate.
As of 1650 GMT, Home Depot shares had slipped 1.78% to $176.36 each.