Home Depot Beats Q1 Expectations, Raises FY Outlook

reported better-than-expected earnings for the first quarter and raised its forecast for the full year. The Atlanta, Georgia-based company posted quarterly net income of $1.58 billion, or $1.21 per share, compared to $1.38 billion, or $1.00 per share, in the year-ago period. Its net sales climbed to $20.89 billion from $19.69 billion. However, analysts were expecting earnings of $1.15 per share on revenue of $20.82 billion. The average estimate among 51 Estimize users was for earnings of $1.17 per share and revenue of $20.86 billion. Its total comparable sales climbed 6.1 percent in the quarter. U.S. comparable sales gained 7.1 percent. Total customer transactions increased 4.6 percent, while average ticket gained 1.8 percent to $58.60. "We had a stronger than expected start to the year as we experienced a more normal spring across much of the country and continued recovery of the U.S. housing market," said Craig Menear, chairman, CEO and president. "I would like to thank our associates for their hard work and dedication." For the year, Home Depot now projects earnings of $5.24 to $5.27 per share, versus its earlier outlook of $5.11 to $5.17 per share. The company now expects sales to rise 4.2 percent to 4.8 percent, versus prior forecast of 3.5 percent to 4.7 percent growth. Home Depot shares fell 1.16 percent to $113.00 in pre-market trading.