Friday, February 3, 2023
HomeMarketHome Depot Tops Earnings and Sales Estimates, Reaffirms 2022 Guidance

Home Depot Tops Earnings and Sales Estimates, Reaffirms 2022 Guidance

A customer enters a Home Depot store in San Rafael, California.

- Advertisement -


Justin Sullivan/Getty Images

Shares of
Home Depot
declined in premarket trading Tuesday after the home-improvement retailer posted earnings that beat analysts’ expectations.

Home Depot (ticker:
HD
) reported third-quarter earnings of $4.24 a share, topping analysts’ projections of $4.12 a share. Revenue came in at $38.9 billion, up 5.6% from a year earlier and topping estimates for $38 billion.

Same-store sales rose 4.3%, ahead of estimates for 3.1%. U.S. same-store sales rose 4.5%.

Home Depot said customer transactions in the third quarter fell 4.3%. Average ticket rose 8.8% to $89.67.

Cost of sales in the third quarter rose 5.7% to $25.65 billion.

“We delivered another solid performance in the third quarter, driven by strength in project-related categories across the business,” said Ted Decker, chairman, president and CEO, in a press release.

The company reaffirmed guidance for fiscal 2022. Previously, Home Depot said it expected comparable sales to grow by 3%, and per-share earnings to grow by mid-single digits.

Investors have been wary of the home improvement sector over the last few quarters, fearing that the slowdown in the housing market would spill over to home improvement.

Home Depot stock fell 2.2% ahead of Tuesday’s opening bell. The shares have lost 26% this year as of Monday’s close.

Write to Sabrina Escobar at sabrina.escobar@barrons.com

Credit: marketwatch.com

RELATED ARTICLES
- Advertisment -

Most Popular