Home Depot Posts Higher-Than-Expected Q2 Earnings, Revenue Falls Short Of Expectations

Home Depot Inc (NYSE: HD) reported better-than-expected Q2 profits, driven by tighter cost controls. However, the company failed to meet the revenue estimates.

Home Depot posted its Q2 net income at $1.2 billion, or $0.72 per share, as compared to $1.1 billion, or $0.66 per share, in the year-ago period. The company’s sales increased by 1.8% y/y to $19.41 billion. The analysts expected the company to earn $0.71 per share on $19.59 billion in revenue. HD’s sales at stores open at least a year increased 1.7%.

HD has updated its projections for FY10 and is now expecting its sales to rise by about 2.6% for the year. The company is forecasting an increase by about 22.6% to $1.90 in its diluted earnings per share from continuing operations for the year.

HD’s Chairman & CEO Frank Blake said, “Our second quarter sales reflect the third consecutive quarter of positive same store sales. We delivered solid results as we continue to build momentum with our merchandising transformation, supply chain enhancements and customer service initiatives.” He added, “I want to thank our associates for their hard work and dedication, and I am proud to announce 97 percent of our stores qualified for success sharing, our bonus plan for hourly associates, for the first half of fiscal 2010.”

HD’s shares moved up 0.26% to $27.45 in the after-hours trading session.

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