Home Depot Q2 Results Top Estimates, Lifts Fiscal-year View Yet Again

(RTTNews) - Home improvement retailer Home Depot, Inc. (HD) Tuesday reported a higher second-quarter profit, as it benefited from a rebound in its seasonal categories and a recovering housing market. Earnings per share as well as revenues topped analysts' expectations. The company also lifted its earnings per share and sales growth outlook for fiscal 2013 once again.

While reporting its first-quarter results in May, the firm had raised its outlook for the fiscal year.

For the second quarter ended August 4, net earnings were $1.80 billion or $1.24 per share, higher than $1.53 billion or $1.01 per share in the previous year. On average, 26 analysts polled by Thomson Reuters expected earnings per share of $1.21 for the quarter. Analysts' estimates typically exclude one-time items.

Quarterly net sales grew 9.5 percent to $22.52 billion from $20.57 billion, which also came above analysts' estimate of $21.80 billion. On a like-for-like basis, comparable-store sales were positive 10.7 percent. Comp sales for U.S. stores were positive 11.4 percent.

The company noted that due to the 14th week in the fourth quarter of fiscal 2012, second quarter sales were impacted by a calendar timing change that resulted in one less week of spring sales compared to last year. The shift reduced total sales growth by about $249 million or 120 basis points.

For fiscal 2013, Home Depot now expects earnings to be $3.60 per share, up from the prior outlook of $3.52 per share. The new guidance represents an increase of 20 percent from last year, while the company's earlier forecast was for an increase of 17 percent from fiscal 2012.

Sales for the year are now anticipated to rise around 4.5 percent, with comparable-store sales increasing about 6 percent. Earlier, full-year sales were projected to be up around 2.8 percent, with comparable store sales growth of nearly 4 percent.

Analysts are currently looking for earnings of $3.64 per share for the fiscal year.

Home Depot said its fiscal 2013 sales and earnings-per-share guidance is based on a 52-week year compared to fiscal 2012, a 53-week year.

At the end of the second quarter, the company operated a total of 2,258 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico.

Home Depot shares closed Monday's regular trading at $75.21 on the NYSE. In the pre-market activity, the shares are currently up 3.58 percent.