Home Depot (HD – Get Report) posted stronger-than-expected first quarter earnings Tuesday, and confirmed its full-year earnings guidance, but unfavorable February weather hit same stores sales growth rates for the world’s biggest home improvement retailer.
Home Depot said diluted earnings for the three months ending on May 5 came in at $2.27 per share, up 9.13% from the same period last year and 9 cents ahead of the consensus Street forecast. Group revenues rose 6% to $26.4 billion, just ahead of analysts’ forecasts. Home Depot also said same stores sales in the U.S. rose 3% from last year, while global comparable revenues rose 2.5%, well shy of the 4.2%.
Looking into the 2020 fiscal year, Home Depot said it confirmed its full-year earnings and sales guidance of a 3.3% rise in revenues, a 5.3% increase in comparable sales and a bottom line of $10.03 per share, both figures falling shy of Refinitiv forecasts.
“We were pleased with the underlying performance of the core business despite unfavorable weather in February and significant deflation in lumber prices compared to a year ago,” said CEO Craig Menear. “Looking ahead, we remain excited about the momentum we are seeing with our strategic investments.”
“As a result of these initiatives, and the current macroeconomic and housing backdrop, today we are reaffirming our sales and earnings guidance for fiscal 2019,” he added. “I would like to thank our associates for their hard work and continued dedication to our customers.”
Home Depot shares were marked 0.26% higher in pre-market trading immediately following the earning release, indicating an opening bell price of $191.00 each.
Read more from source here…