Home Depot (HD) Profit For Q3 2021 Beats Forecast

A partially masked shopper at a store in Reston, VA, Thursday, May 21, 2020.

Andrew Harrer | Bloomberg via Getty Images

On Tuesday, Home Depot reported quarterly earnings and revenue that beat analysts’ forecasts as customers spent more on home improvement projects.

The company’s shares fell less than 1% in the premarket.

Here’s what the company said, compared to Wall Street’s expectations, based on a survey by Refinitiv analysts:

  • Earnings per share: $ 3.92 vs. $ 3.40 expected.
  • Revenue: $ 36.82 billion vs. $ 35.01 billion expected

The home goods company reported fiscal third quarter net income of $ 4.13 billion, or $ 3.92 per share, up from $ 3.43 billion, or $ 3.18 per share, a year earlier. Analysts polled by Refinitiv had expected earnings per share of $ 3.40.

Net sales rose 9.8% to $ 36.82 billion, beating expectations of $ 35.01 billion. Same-store sales rose 6.1% in the quarter, beating StreetAccount estimates of 2.2%. The retailer faced tough comparisons to last year, when single-store sales skyrocketed as consumers took on more do-it-yourself projects.

A strong housing market helped Home Depot compete with Lowe’s. Consumers are investing more as home prices rise, up nearly 20% from last year. Demand for materials from home professionals is growing, which helps offset the declining demand from home projects. Home Depot has a large share of the professional market, although Lowe’s is trying to get more in the business.

Home Depot’s customer transactions fell 5.5% this quarter to 428.2 million. But consumers spent more during their visit, resulting in an average check up 12.9% to $ 82.38. Sales per square foot increased 6.2% for the quarter.

Read the full income statement here.

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