On Tuesday, Home Depot raised its forecast for the full year after announcing high quarterly earnings, fueled by the company’s strongest sales in the first quarter in history. Shares of the company rose 4% in pre-market trading.
Here’s what Home Depot reports compared to what Wall Street expected, based on a survey of Refinitiv analysts:
- Earnings per share: $ 4.09 vs. $ 3.68 is expected
- Income: $ 38.91 billion versus the expected $ 36.72 billion
In the first quarter, net income of $ 4.23 billion, or $ 4.09 per share, compared to $ 4.15 billion, or $ 3.86 per share, in the first quarter was $ 4.09 per share. Analysts polled by Refinitiv expected the company to receive $ 3.68 per share.
Net sales rose 3.8% to $ 38.91 billion, exceeding expectations of $ 36.72 billion. Sales at the same store rose 2.2% in the quarter.
“The quarterly social figures are even more impressive as we compared last year’s historical growth and faced a slow start to spring this year,” CEO Ted Decker said in a statement.
This is the first quarter for Decker at the helm of the company. Decker, a longtime Home Depot veteran, previously served as chief operating officer and inherited a senior position during difficult times for home improvement.
Inflation continues to rise, which may force consumers to postpone reconstruction projects. Rising interest rates could lead to a slowdown in the hot housing market and delays in expensive home improvement plans. And many consumers have spent the first days of the pandemic, painting their walls, buying new patio furniture and taking care of other projects done with their own hands that won’t need to be repeated for at least a few years.
But Tuesday’s results show that consumers are still willing to spend money on their homes, and the company doesn’t expect the trend to change.
In 2022, Home Depot expects sales growth of about 3% and earnings per share growth on average unambiguous. Earlier, the company forecast “slightly positive” sales growth and earnings per share with low single digits.
Read the full report here.