Home Depot ups full-year outlook after Q3 beat
Home Depot Inc.
$410.19
11:09 13/11/24
Home improvement retailer Home Depot reported a small increase in profits in the third quarter as lower margins were offset by higher sales, with results coming in ahead of market expectations.
Dow Jones I.A.
43,958.19
04:30 15/10/20
The company also raised its outlook for the full year ending January 2025, predicting a bigger-than-expected increase in annual sales.
Adjusted operating income in the three months to 27 October totalled $5.6bn at an adjusted operating margin of 13.8%, compared with $5.5bn and 14.5% the year before.
Net earnings per share fell to $3.67 from $3.81. But, when adjusting for one-off items, EPS totalled $3.78, comfortably ahead of the $3.65 consensus forecast.
Third-quarter revenues were up 6.6% year-on-year at $40.2bn, beating the $39.3bn expected by analysts, with a 1.3% decline in comparable-store sales not as bad as the 3.1% decrease pencilled in by the market.
For the full year, the company said it expects comparable sales to fall by 2.5%, compared with previous guidance of a 3-4% decline, while total sales growth is targeted at 4%, up from 2.5-3.5% previously.
"While macroeconomic uncertainty remains, our third quarter performance exceeded our expectations," said chair, president and chief executive Ted Decker.
"As weather normalised, we saw better engagement across seasonal goods and certain outdoor projects as well as incremental sales related to hurricane demand."
The stock was rising 0.5% to $410.25 in early deals on Tuesday.