Home Depot Posts In-Line Q2 Profit, Lifts FY Forecast

reported in-line earnings for the second quarter and lifted its outlook for the year. The Atlanta, Georgia-based company posted quarterly net income of $2.23 billion, or $1.73 per share, compared to $2.05 billion, or $1.52 per share, in the year-ago period. Excluding non-recurring items, the company's earnings came in at $1.71 per share. Its net sales climbed to $24.83 billion from $23.81 billion. However, analysts were expecting earnings of $1.71 per share on revenue of $24.7 billion. The average estimate among 56 Estimize users was for earnings of $1.72 per share and revenue of $24.74 billion. Its comparable store sales rose 4.2 percent, while comparable sales for U.S. stores gained 5.7 percent. "We were pleased with this quarter's results. We saw balanced growth across our business resulting from strength in the core of the store as well as the continued recovery of the U.S. housing market," said Craig Menear, chairman, CEO and president. For the full year, Home Depot expects earnings to rise 13 percent to 14 percent to $5.31 to $5.36 per share, and revenue growth of 5.2 percent to 6 percent. The company had earlier expected earnings growth of 11 percent to 12 percent and sales growth of 4.2 percent to 4.8 percent. The company also projects comparable sales to grow 4.1 percent to 4.9 percent. Home Depot shares fell 0.58 percent to $119.00 in pre-market trading.