Home Depot Inc (NYSE:HD) reiterated is outlook

Home Depot Inc (NYSE:HD) stock rose 0.38% (As on November 16, 11:08:42 AM UTC-4, Source: Google Finance) after the company reported sales and profit that exceeded expectations as a backlog of home improvement projects that piled up during the pandemic continue to drive growth. Comparable sales at the largest U.S. home improvement chain rose 4.3% in the third quarter, compared with estimates of a 3.1% increase, according to Refinitiv IBES data. The average customer ticket was about $89 in the third quarter, almost 9% higher than a year earlier. Big-ticket comp transactions, or those over $1,000, were up 10.1 percent compared to the third quarter of last year. At the same time, transactions declined 4.3%. Net earnings for the third quarter of fiscal 2022 were $4.3 billion, compared with net earnings of $4.1 billion, in the same period of fiscal 2021, representing an 8.2 percent increase. During the third quarter, both Pro and DIY sales growth were positive with Pro outpacing DIY.

HD in the third quarter of FY 22 has reported the adjusted earnings per share of $4.24, beating the analysts’ estimates for the adjusted earnings per share of $4.12. The company had reported the adjusted revenue growth of 5.6 percent to $38.87 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $37.95 billion. Sales leveraging the digital platforms increased nearly 10% compared to the third quarter of last year.

Meanwhile, in the Gift Center the company continues to lean into brands that matter most for the customers with the assortment of Milwaukee, Ryobi, Makita, DeWalt, Ridgid, Husky and more. Earlier this fall, the company had launched the next generation of the Milwaukee Drill and Drive M18 Fuel lineup offering more power, runtime, and increased safety for te customers. In the Gift Center the company are featuring this innovation in combo kits with 4-tools and 2- tools.

For the full financial year, Home Depot Inc reiterated is outlook of about a 3.0% annualised increase in sales and a mid-single-digit growth in per-share earnings. In comparison, analysts had called for a 6.9% increase in EPS in 2022. For fiscal 2022, the company expects comparable sales growth to be of approximately 3.0 percent, Operating margin to be of approximately 15.4 percent and Net interest expense to be of approximately $1.6 billion.

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