Home Depot Raises Earnings Forecast But This Housing Gauge Weakens – Investor's Business Daily

This post was originally published on this site

Home improvement retailer Home Depot (HD), a Dow Jones industrial average component, reported first-quarter earnings on Tuesday that topped Wall Street forecasts and lifted its full-year profit outlook, but a key housing-construction indicator turned lower.

Estimates: Earnings per share of $1.62, up 12.5%, on a 4% revenue increase to $23.759 billion.

Results: EPS of $1.67, up 16% vs. a year earlier, as revenue grew 4.9% to $23.887 billion. Global same-store sales rose 5.5% vs. a year earlier, topping views of 4%. U.S. comps advanced 6%, over forecasts for 4.3%.

Outlook: Home Depot raised its full-year EPS target to $7.15 from $7.13, citing expected stock buybacks. Analysts have expected $7.20. Home Depot still sees 4.6% gains for total revenue and comps.

Stock: Shares rose 2.1% to 160.58 in morning trade on the stock market today, a new record high. Home Depot shares are extended from a 137.42 buy point cleared decisively in early February.

“We were pleased with our results as they reflected broad-based growth across our interconnected platform and all geographies,” said Craig Menear, chairman and CEO, in a statement.

Rival Lowe’s (LOW), which reports first-quarter earnings next week, was up 1.1% to 86.10. Lowe’s is in buy range from an 84.10 buy point.

As other retail stocks wilt, Home Depot and Lowe’s have stayed above the fray, buoyed by a stronger housing market that has kept people busy with home repairs, add-ons and makeovers.

But the Commerce Department said after Home Depot’s earnings report that housing starts fell 2.6% to an annualized pace of 1.17 million units in April, missing forecasts for an uptick to 1.26 million. Building permits, a sign of future activity, also dropped, declining 2.5% to an annualized rate of 1.23 million, below views for 1.27 million.


Here’s One More Thing Amazon May Be Killing

What To Expect From Target, Wal-Mart In The Wake Of Mall Meltdown

Macy’s Doesn’t Know How To Fix Its Stores, Hopes Something Will Work

Sears Stock Tanks As CEO Accuses Suppliers Of Exploiting It

This post was originally published on *this site*