Home Depot’s same-store sales, which includes revenue only from established stores, rose 4.2 percent, with an increase in the number of transactions driving most of the gain.
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Earnings for the company reached $1.13 billion equal to $1.20 a share compared to last year during the same period of $1.04 billion equal to $1.04 a share.
Home Depot ended the second quarter with cash and cash equivalents of $4,936 million, long-term debt (excluding current maturities) of $16,318 million and shareholders’ equity of $8,637 million.
It’s the sixth straight quarter of sales growth for the Atlanta company, according to FactSet. The ongoing boom across the US housing sector has assisted the home improvements company post sturdy revenues and earnings.
Lowe’s and Home Depot both have capitalized on years of housing-price gains, but Lowe’s is struggling to execute as well as its larger rival. The Home Depot stores average about 104,000 square feet of enclosed space, with about 24,000 additional square feet of outdoor garden area. that is The Home Depot stores serve three primary customer groups: do it yourself (DIY) customers, do-it-for-me (DIFM) customers and professional customers.
Analysts surveyed by Thomson Reuters have forecasted that the company will report $24.7 billion in revenue with $1.71 per share earnings.
That was due to more activity in home remodeling in the U.S. and a recovery in general of the housing market.
Analysts had projected revenue of $24.66 billion, according to Zacks Investment Research.
“They really got chastened on how much debt they should have”.
Home Depot Inc. boosted its earnings and sales forecasts for the year as the continued rise of U.S. home prices encourages Americans to fix up their houses. Therefore, although the shares of the company have gone up, and the future seems rather bright for the company, investors must still take a close look at the overall financial performance of Home Depot (NYSE:HD) before investing money into the business.
Wall Street looks for earnings of $5.27 per share for the year on revenues of $87.02 billion.
The company now expects sales to rise by 5.2% to 6% for fiscal year 2015. The Home Depot’s stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor’s 500 index.
Up till now, the shares of Home Depot (NYSE:HD) have surpassed the market.
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The Commerce Department reported Tuesday that construction of single-family homes shot up 12.8 percent in July to the highest rate since December 2007.
