“We delivered another solid performance in the third quarter, driven by strength in project-related categories across the business,” said CEO Ted Decker.
Updated at 12:18 pm EST
Home Depot (HD) – Get Free Report posted better-than-expected third quarter earnings Tuesday, while reiterating its full-year profit forecast, as the home retailer capitalized on a new wave of remodeling projects, as well as higher prices, amid a broader decline in the U.S. housing market.
Home Depot said earnings for the three months ending in October, the company’s fiscal second quarter, were pegged at $4.25 per share, up 25.6% from the same period last year and firmly ahead of the Street consensus forecast of $4.13 per share. Group revenues, Home Depot said, rose 5.6% to $38.87 billion, just ahead of analysts’ estimates of a $37.95 billion tally.
Same store sales were up 4.3% from last year, Home Depot said, soundly beating the Refinitiv forecast of 3.1%, while comparable sales in the U.S. were up 4.5%, a figure that also topped Street forecasts. Average tickets rose 8.8% per trip, compared to a 9.1% growth rate in the second quarter, to just under $90, even as the number of individual transaction slowed by around 4.3%.
Looking into the 2022 fiscal year, which ends next January, Home Depot reiterated that it sees ‘mid single digit’ earnings growth, up from its prior forecast of ‘low single digit’ gains, and comparable sales growth of around 3% and operating margins of around 15.4% Comparable sales are expected to be positive over the final quarter, Home Depot said.
“We delivered another solid performance in the third quarter, driven by strength in project-related categories across the business,” said CEO Ted Decker. “Our team has done a fantastic job serving our customers while continuing to navigate a challenging and dynamic environment. I would like to thank them and our many partners for their hard work and dedication to our customers.”
Home Depot shares were marked 1.7% higher in early afternoon trading following the earnings release to change hands at $312.12 each, trimming the stock’s year-to-date decline to around 23.5%.