The stock has a market capitalization of $155.49 billion and a PE ratio of 24.30.
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Revenues: Home Depot’s net sales increased 4.3% year over year to $24,829 million, also surpassing the Zacks Consensus Estimate of $24,660 million. In the U.S., sales gained 5.7 percent.
The recovery of the housing market continues to lift Home Depot, pushing sales and profits above Wall Street expectations during the second quarter.
Home Depot posted earnings of $1.71 a share, matching analyst estimates and up from last year’s $1.52 a share.
Excluding items, the company earned $1.71 per share, in line with the average analyst estimate. Gross profit margin expanded 120 basis points (bps) to 34.8%. Selling, General and Administrative expenses on the other hand dampened 10 bps to 17.3%, boosting operating margin by 20 bps to 14.7%. In the past week, the shares have outperformed the S&P 500 by 1.73% and the outperformance increases to 6.37% for the last 4 weeks. On a weekly measure, the shares have seen a price change of -0.68%.The shares witnessed a block transaction with a net money flow of $6.68 million. It has issued improved guidance for earnings, which are projected to climb around 13% to 14%. That’s up from a forecast of a gain as high as 4.6 percent that the retailer provided in May. After the session commenced at $119.1, the stock reached the higher end at $120.75 while it hit a low of $118.73.
The company also raised its full-year outlook to a range of $5.31 to $5.36 a share. Earlier in the month, the Department of Commerce reported that residential construction improved by 0.4% during the month of June.
Because Home Depot caters to both contractors and do-it-yourselfers, optimism about the housing market on either front increases store traffic.
U.S. home builder sentiment rose in August to its highest level in nearly a decade, the National Association of Home Builders said on Monday. The reading was 60 in both June and July.
“There was very much a view that sales could be soft here, and what we’re seeing in these numbers is that they’re actually quite good”, he told CNBC’s “Squawk Box.” In a statement by the brokerage house, JP Morgan maintains its outlook on Home Depot, Inc.
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Home Depot shares edged lower in premarket trading immediately following the report.
