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Home Depot raises full-year outlook after earnings beat, report first-quarter gross sales

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Home Depot raises full-year outlook after earnings beat, report first-quarter gross sales

Home Depot on Tuesday raised its full-year outlook after reporting robust quarterly earnings, fueled by the corporate’s strongest first-quarter gross sales on report. Shares of the corporate rose 4% in premarket buying and selling.

Here’s what Home Depot reported in contrast with what Wall Street was anticipating, primarily based on a survey of analysts by Refinitiv:

  • Earnings per share: $4.09 vs. $3.68 anticipated
  • Revenue: $38.91 billion vs. $36.72 billion anticipated

The house enchancment retailer reported first-quarter web revenue of $4.23 billion, or $4.09 per share, up from $4.15 billion, or $3.86 per share, a yr earlier. Analysts surveyed by Refinitiv have been anticipating the corporate to earn $3.68 per share.

Net gross sales rose 3.8% to $38.91 billion, topping expectations of $36.72 billion. Same-store gross sales elevated 2.2% within the quarter.

“The solid performance in the quarter is even more impressive as we were comparing against last year’s historic growth and faced a slower start to spring this year,” CEO Ted Decker mentioned in an announcement.

This marks Decker’s first quarter on the helm of the corporate. Decker, a longtime Home Depot veteran, beforehand served as chief working officer and inherited the highest job at a tricky time for house enchancment.

Inflation retains climbing, which can lead customers to place off renovation tasks. Rising rates of interest might lead to a slowdown within the scorching housing market and delays to costly house enchancment plans. And many customers spent the early days of the pandemic portray their partitions, shopping for new patio furnishings and caring for different do-it-yourself tasks that will not must be repeated for a minimum of a number of years.

But Tuesday’s outcomes present that buyers are nonetheless keen to spend cash on their houses, and the corporate is not anticipating the pattern to reverse.

For 2022, Home Depot is now anticipating gross sales progress of about 3% and earnings per share progress within the mid-single digits. The firm beforehand forecast “slightly positive” gross sales progress and earnings per share progress within the low-single digits.

Read the complete report right here.

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