Home Depot’s second quarter 2017 earnings became an immensely important event for the company, as the stock got routed in late July due to concerns that Amazon’s partnership with Sears would disrupt the appliances market. The stock has recovered nicely since then, and quarterly earnings became all the more important as solid numbers would lift sentiment, allowing the stock to continue its recovery process.
Home Depot didn’t disappoint its loyalists, and the company posted great numbers during the second quarter earnings that were released on Tuesday, August 15th. The Number One home improvement retailer in terms of revenue reported earnings per share of $2.25 on the back of $28.11 billion in revenue, handily beating market expectations of $2.22 earnings per share and revenue of $27.84 billion. The beat was made possible by strong comparable store sales, which shot up by 6.3%, better than the expected 4.9%.
“We were pleased with our results this quarter as our customers rewarded us with the highest quarterly sales in company history,” said Craig Menear, chairman, CEO and president. “We also achieved the highest quarterly net earnings in company history. These results were made possible by our hard working associates and the outstanding values brought forth by our supplier partners.”
For fiscal 2017, Home Depot had forecasted for comparable store sales of 4.6%, but ended up posting 5.5% growth during the first quarter and 6.3% during the second quarter. This has allowed Home Depot to revise its forecast upwards, and the company is now expecting comparable store sales growth of 5.5.% and sales growth of 5.3%, a bit lower than the 5.6% comps and 6.9% sales growth they reported last year.
Home Depot increased its diluted earnings-per-share growth guidance for the year and now expects diluted earnings-per-share growth of approximately 13.0 percent from fiscal 2016 to $7.29. The diluted earnings-per-share growth guidance includes the impact of $7 billion of share repurchases for fiscal 2017. – Home Depot Q2-17 Earnings Release
Net Sales during the first six months of the current fiscal have now reached $51.995 billion, compared to $49.234 billion last year, a growth of 5.6%. Considering the way big box retailers are struggling to hold their ground in the US market, the home improvement segment, led by Home Depot, continues to be a glimmer of hope.
