Home Depot Ratchets Up Fiscal Year Guidance-- update

By Allison Prang 

Home Depot Inc. reported third-quarter earnings that rose sharply from the comparable quarter last year and once again increased sales and earnings guidance for the fiscal year.

The home-improvement chain reported net income of $2.87 billion, up 32%. It said earnings per share totaled $2.51 up from $1.84. Analysts polled by Refinitiv were expecting earnings of $2.26 a share.

The retailer's provision for income taxes fell substantially, which strongly boosted profit.

Net sales increased 5.1% to $26.3 billion. Analysts polled by Refinitiv were expecting $26.26 billion.

Same-store sales grew 4.8%. Analysts polled by Consensus Metrix were expecting them to rise by 4.7%.

Home Depot said it now expects full-year sales to increase by about 7.2%. It also expects that for the comparable 52-week period that same-store sales will increase by about 5.5%. The 2018 fiscal year has 53 weeks. The company also said it now expects profit for the year to be $9.75 a share.

Analysts polled by Refinitiv are expecting GAAP earnings of $9.56 a share and adjusted earnings of $9.55 a share.

When it announced its second-quarter financial results in August, Home Depot said it expected sales, including the 53rd week, to increase by about 7% and that for the comparable 52-week period, it was expecting for comparable-store sales to grow by about 5.3%. It also said it expected earnings per share to be $9.42.

The higher earnings guidance takes into account more in share buybacks than the company noted in its previous guidance. Home Depot said Tuesday it now expects about $8 billion in share repurchases for the year. When it announced its second-quarter results, it said its earnings guidance for the year included $6 billion in buybacks.

Shares of Home Depot, down 5.3% year to date, rose 2.3% premarket.

Write to Allison Prang at [e-mail]

(END) Dow Jones Newswires

November 13, 2018 06:52 ET (11:52 GMT)

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