Home Depot Lifts FY17 Earnings View As Q1 Results Top Estimates

(RTTNews) - Home Depot Inc. (HD), the world's largest home improvement retailer, on Tuesday lifted its fiscal 2017 earnings growth view and maintained sales forecast. In its first quarter of fiscal 2017, the company recorded higher profit and sales above market estimates.

In pre-market activity, Home Depot shares were gaining 2.5 percent to $161.30.

Craig Menear, chairman, CEO and president, said, "We were pleased with our results as they reflected broad-based growth across our interconnected platform and all geographies."

For fiscal 2017, the company now expects earnings-per-share growth after anticipated share repurchases of approximately 11 percent from fiscal 2016 to $7.15.

The company previously expected earnings per share growth after anticipated share repurchases of approximately 10.5 percent to $7.13.

On average, 31 analysts polled by Thomson Reuters expect earnings of $7.20 per share for the year. Analysts' estimates typically exclude special items.

Further, based on its year-to-date performance, the company reaffirmed its fiscal 2017 sales growth guidance and expects sales would be up approximately 4.6 percent and comparable store sales would be up approximately 4.6 percent.

The company previously said it expects gross margin decrease of approximately 15 basis points and operating margin expansion of approximately 30 basis points.

In its first quarter, net earnings were $2.01 billion, 11.7 percent higher than net earnings of $1.80 billion in the prior year. Earnings per share increased 16 percent to $1.67 from $1.44 in the prior year.

Home Depot reported sales of $23.89 billion for the first quarter, a 4.9 percent increase from $22.76 billion a year ago.

Analysts were looking for earnings of $1.61 per share on sales of $23.72 billion for the quarter.

Comparable store sales for the first quarter were positive 5.5 percent, and comp sales for U.S. stores were positive 6 percent.

At the end of the first quarter, the company operated a total of 2,281 retail stores.