Home Depot Stock Edges Higher as Profit Tops Forecasts

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Home Depot’s same-store sales rose 5.8%.

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.

Home Depot

(ticker: HD) shares rose1.4% to $319.11. It had been pressured in premarket trading after customer transactions declined 3% in the period, and the company’s full-year outlook could imply lower-than-hoped earnings.

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.” 

Total customer transactions, however, fell to 467.4 million in the second quarter from 481.7 million a year earlier. Home Depot said its average ticket rose 9.1% to $90.02.

The company 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, although investors may have been hoping for more clarity here: 5% growth would imply below-consensus earnings…

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