Continuing Improvement In The Housing Market Boost Home Depot Shares Toward All Time High
Shares of handyman’s haven Home Depot HD +1.12% were up 3.6% to $82.54 in pre-market trading, as third-quarter earnings pushed shares toward a new all-time high.
Net earnings of $1.4 billion were up42.7% from the same period last year. Earnings per share of 95 cents were up 50.8% and handily beat the Street’s 89-cent estimate. Net sales were also up 7.4% to $19.5 billion.
The significant earnings growth growth is due in part to a $165 million charge the company took last year after closing seven stores in China. Adjusted to reflect this one time charge earnings per share grew 28.4%.
“Our third quarter results reflect the continuing improvement in the housing market and our solid operational performance,” said CEO Frank Blake. Home Depot record 4% more transactions than the same period last year for a total of 344.3 million. The average ticket was also up from $54.55 to $56.27.
Thanks to the better than expected results, Home Depots improved its full-year outlook. The company now expects sales growth of around 5.6% to $78.9 billion and same store sales to be up 7%. Per share earnings are now expected to hit $3.72, up from a previous $3.60 outlook.