Home Depot Q1 Profit Beats Estimates, Comps. Up 2.5%; Affirms Outlook

(RTTNews) - Home improvement retailer, Home Depot Inc. (HD), reported that its first-quarter earnings per share increased 9.1 percent year-on-year. Comparable sales were up 2.5 percent, and comparable sales in the U.S. rose 3.0 percent. As a result of the strategic investments, and the current macroeconomic and housing backdrop, Home Depot reaffirmed its sales and earnings guidance for fiscal 2019.

For the first-quarter, net earnings were $2.5 billion, or $2.27 per share, compared to $2.4 billion, or $2.08 per share, prior year. On average, 29 analysts polled by Thomson Reuters expected the company to report profit per share of $2.19 for the quarter. Analysts' estimates typically exclude special items.

First-quarter net sales were up 5.7% to $26.38 billion from $24.95 billion, a year ago. Analysts expected revenue of $26.39 billion for the quarter.

"We were pleased with the underlying performance of the core business despite unfavorable weather in February and significant deflation in lumber prices compared to a year ago," said Craig Menear, CEO.

For fiscal 2019, a 52-week year, the company continues to project sales to grow by approximately 3.3 percent compared to 53-week fiscal 2018, and comp sales for the comparable 52-week period to be up approximately 5.0 percent. The company expects earnings per share growth of approximately 3.1 percent for the fiscal year.