UPDATE: Home Depot Posts Upbeat Q2 Earnings, Shares Surge
Shares of Home Depot (NYSE: HD) surged more than 3.4% in pre-market trading after the company reported better-than-expected second-quarter earnings and lifted its 2014 earnings outlook.
The Atlanta, Georgia-based company posted quarterly net earnings of $2.05 billion, or $1.52 per share, compared to $1.8 billion, or $1.24 per share, in the year-ago period.
Its net sales climbed 5.7% to $23.81 billion versus $22.52 billion. However, analysts were projecting earnings of $1.44 per share on sales of $23.6 billion.
Comparable store sales climbed 5.8%, while same-store sales at US stores jumped 6.4% in the quarter.
Home Depot's gross margin came in flat at 34.3% in the quarter. Customer transactions increased 4.2%, while average ticket rose 1.8% in the quarter.
"In the second quarter, our spring seasonal business rebounded, and we saw strong performance in the core of the store and across all of our geographies," said Frank Blake, chairman and CEO.
Home Depot now expects 2014 earnings of $4.52 per share, versus analysts' estimates of $4.41 per share.
Home Depot shares gained 3.48% to $86.50 in pre-market trading.
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