The Home Depot, Inc. (HD – Free Report) , the world’s largest home improvement specialty retailer reported second-quarter fiscal 2017 earnings of $2.25 a share, ahead of the Zacks Consensus Estimate of $2.21. Also, quarterly earnings jumped 14.2% year over year.
Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2017 remained stable in the last 30 days. Home Depot’s performance in the trailing four quarters (excluding the quarter under review) gives a positive picture, with an average surprise of 3.5%.
Revenues: Total revenue increased 6.2% year over year to $28,108 million. Comparable-store sales (comps) for second-quarter fiscal 2017 rose 6.3%, while U.S. comps increased 6.6%.
Guidance: Home Depot raised its fiscal 2017 sales and earnings outlook on the back of solid first half fiscal 2017 results. The company now expects sales growth of nearly 5.3%, alongside a 5.5% increase in comps. Earlier, the company expected both net sales and comps for fiscal 2017 to increase 4.6%. Further, management now anticipates diluted earnings per share to increase about 13% to $7.29 in fiscal 2017, compared with the previous guidance of 11% growth to $7.15. The guidance includes $7 billion impact from share repurchases.
Zacks Rank: Currently, Home Depot carries a Zacks Rank #2 (Buy) which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stock Movement: Despite the solid second-quarter results, Home Depot’s shares inched down 0.2% during pre-market trading hours following the earnings release.
Check back later for our full write up on Home Depot’s earnings report!
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