On Tuesday, Home Depot reported quarterly revenues and revenues that beat analysts’ forecasts as customers spent more on housing improvement projects.
The home improvement store’s shares fell less than 1% in pre-market trading.
Here is what the company reported compared to what Wall Street expected, based on a survey among analysts from Refinitiv:
- Earnings per share: $ 3.92 vs. $ 3.40 expected
- Revenue: $ 36.82 billion against the expected $ 35.01[ads1] billion
Net income for the third quarter ended October 31 rose to $ 4.13 billion, or $ 3.92 per share, from $ 3.43 billion, or $ 3.18 per share, a year earlier. Analysts surveyed by Refinitiv expected earnings of $ 3.40 per share.
Net sales rose 9.8% to $ 36.82 billion, exceeding expectations of $ 35.01 billion. Sales in the same store rose 6.1% in the quarter, beating StreetAccount estimates of 2.2%. The retailer faced tough comparisons with a year ago, when sales in the same store were sky high, thanks to consumers taking on several do-it-yourself projects.
A strong housing market has helped Home Depot and rival Lowe’s. Consumers have invested more as house prices rise, rising almost 20% compared to a year ago. The demand for materials has increased from home professionals, which helps to offset lower demand from do-it-yourself projects. Home Depot has a larger share of the professional market, although Lowe’s is trying to win more from that business.
This quarter, Home Depot’s customer transactions fell by 5.5% to 428.2 million. But consumers spent more when they visited, increasing the average ticket price by 12.9% to $ 82.38. Sales per square foot increased by 6.2% in the quarter.
Read the full results message here.