Home Depot Q2 Profit Tops Estimates, Comps. Up 8.0%; Raises Outlook

(RTTNews) - The Home Depot (HD) reported second-quarter net earnings of $3.5 billion, or $3.05 per share, compared to $2.7 billion, or $2.25 per share, last year. For the second quarter, earnings per share increased 35.6% from the same period in the prior year. On average, 30 analysts polled by Thomson Reuters expected the company to report profit per share of $2.84 for the quarter. Analysts' estimates typically exclude special items.

Second-quarter sales were $30.5 billion, an 8.4% increase from the second quarter of fiscal 2017. Comparable sales for the second quarter of fiscal 2018 were positive 8.0%, and comp sales in the U.S. were positive 8.1%. Analysts expected revenue of $30.03 billion for the quarter.

"Not only did our seasonal business rebound from the first quarter, but our overall results exceeded our expectations. These results exemplify the outstanding execution of our combined team of store associates, merchants, suppliers and supply chain," said Craig Menear, chairman, CEO and president.

Based on its year-to-date performance, the company updated fiscal 2018 sales growth guidance and now expects sales will be up approximately 7.0% including the 53rd week, with comp sales growth of approximately 5.3% for the comparable 52-week period. The company also raised earnings per share growth guidance for the year and now expects earnings per share growth of approximately 29.2% from fiscal 2017 to $9.42. The company noted that its earnings per share growth guidance includes $6 billion of share repurchases for fiscal 2018.