Friday, October 31st9.4°C
21625
23778

Home Depot 1Q results miss expectations, but calls May sales robust, boosts earnings guidance

ATLANTA - Home Depot's fiscal first-quarter net income climbed 12 per cent, helped by better sales, but results fell short of expectations as a cold and rainy spring hurt results.

The company said May sales were "robust" and the No. 1 home improvement retailer raised its full-year earnings forecast. Shares rose almost 2 per cent in morning trading.

Spring is the biggest season for home improvement retailers as homeowners and others work on their yards and gardens.

Meanwhile, the U.S. housing market has emerged from a deep slump, aided by rising home prices, steady job growth and fewer troubled loans dating back to the housing-bubble days. While the housing market has recently struggled to maintain that momentum, many home owners are spending more to renovate their homes.

"The first quarter was impacted by a slow start to the spring selling season. But we had solid results in non-weather impacted markets and expect our sales for the year to grow in line with the guidance we previously provided," said CEO Frank Blake.

The Atlanta-based retailer earned $1.38 billion, or $1 per share, for the three months ended May 4. That compares with $1.23 billion, or 83 cents per share, a year earlier.

The latest quarter's results included a benefit of 4 cents per share related to the sale of part of its equity ownership in HD Supply Holdings Inc.

Stripping out the benefit, earnings amounted to 96 cents per share. Analysts, on average, expected earnings of 99 cents per share, according to a FactSet survey.

Revenue for the Atlanta company rose 3 per cent to $19.69 billion, but missed Wall Street's estimate of $19.97 billion.

Sales at U.S. stores open at least a year increased 3.3 per cent. For the entire company, the metric rose 2.6 per cent.

These figures are a key indicator of a retailer's health. They exclude results from locations recently opened or closed.

Home Depot now foresees fiscal 2014 earnings of $4.42 per share. Its prior guidance was for earnings of $4.38 per share. Analysts expect full-year earnings of $4.41 per share.

The chain reaffirmed its outlook for 2014 revenue to rise by about 4.8 per cent. Based on 2013's revenue of $78.81 billion, this implies approximately $82.6 billion. Wall Street expects revenue of $82.62 billion.

Home Depot's smaller rival Lowe's Cos. reports results on Wednesday.

Home Depot had 2,263 stores in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico at the end of the first quarter.

Shares rose $1.34, or 1.8 per cent, to $77.84 in morning trading. The stock has dipped 6 per cent since the beginning of the year.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14613.32+154.63
S&P CDNX769.59-2.06
DJIA17390.52195.10
Nasdaq4630.742+64.604
S&P 5002018.05+23.40
CDN Dollar0.88750.00
Gold1166.30-32.2999
Oil80.55-0.35
Lumber325.70+2.10
Natural Gas3.715+0.066

 
Okanagan Companies
Pacific Safety0.125+0.015
Knighthawk0.01-0.005
QHR Technologies Inc1.18+0.03
Cantex0.045-0.015
Anavex Life Sciences0.185+0.0139
Metalex Ventures0.03-0.005
Russel Metals32.85+0.63
Copper Mountain Mining2.09+0.12
Colorado Resources0.125-0.015
ReliaBrand Inc0.015+0.003
Sunrise Resources Ltd0.05+0.025
Mission Ready Services0.39+0.015

 





FEATURED Property
16927432440 Old Okanagan Hwy
3 bedrooms 2 baths
$225,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Empty nesting: financial issues

Now that the children have ‘left the nest’, it is a good time to step back and take stock of your financial situation. Being on your own will probably cut household costs to some extent, b...


Keep your haunted home safe

Eerie sounds, spooky lights and Jack-o’-lanterns aglow—extra efforts at Halloween will keep visitors coming back for both tricks and treats. However, to keep the fun going, it’s imp...


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...

_








Member of BC Press Council


22707