Home Depot Ratchets Up Fiscal Year Guidance-- update
November 13 2018 - 7:07AM
Dow Jones News
By Allison Prang
Home Depot Inc. reported third-quarter earnings that rose
sharply from the comparable quarter last year and once again
increased sales and earnings guidance for the fiscal year.
The home-improvement chain reported net income of $2.87 billion,
up 32%. It said earnings per share totaled $2.51 up from $1.84.
Analysts polled by Refinitiv were expecting earnings of $2.26 a
share.
The retailer's provision for income taxes fell substantially,
which strongly boosted profit.
Net sales increased 5.1% to $26.3 billion. Analysts polled by
Refinitiv were expecting $26.26 billion.
Same-store sales grew 4.8%. Analysts polled by Consensus Metrix
were expecting them to rise by 4.7%.
Home Depot said it now expects full-year sales to increase by
about 7.2%. It also expects that for the comparable 52-week period
that same-store sales will increase by about 5.5%. The 2018 fiscal
year has 53 weeks. The company also said it now expects profit for
the year to be $9.75 a share.
Analysts polled by Refinitiv are expecting GAAP earnings of
$9.56 a share and adjusted earnings of $9.55 a share.
When it announced its second-quarter financial results in
August, Home Depot said it expected sales, including the 53rd week,
to increase by about 7% and that for the comparable 52-week period,
it was expecting for comparable-store sales to grow by about 5.3%.
It also said it expected earnings per share to be $9.42.
The higher earnings guidance takes into account more in share
buybacks than the company noted in its previous guidance. Home
Depot said Tuesday it now expects about $8 billion in share
repurchases for the year. When it announced its second-quarter
results, it said its earnings guidance for the year included $6
billion in buybacks.
Shares of Home Depot, down 5.3% year to date, rose 2.3%
premarket.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
November 13, 2018 06:52 ET (11:52 GMT)
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