Home Depot (HD) Q3 2021 revenues beat estimates

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.

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