reported earnings for the third quarter, which rose sharply from a year earlier and again increased its full-year management as…
reported earnings for the third quarter, which rose sharply from a year earlier and again increased its full-year management as the reseller benefited from strong demand in home improvement companies.
However, the company said it will continue to face tougher comparisons due to last year’s hurricanes, which led to an increase in sales associated with rebuilding areas damaged by storms.
Home Depot profit increased by 32% to $ 2.87 billion, or $ 2.51 per share. Analysts requested by Refinitive expected a $ 2.26 earnings per share. The dealer’s commission income tax decreased by approximately USD 489 million from the previous year, which helped to increase profits.
Net sales increased 5.1
% to $ 26.3 billion, which helped increase customer transactions and average price per customer transaction. Analysts requested by Refinitive expected 26.26 billion dollars. Sales in the same store increased by 4.8%, compared to the 4.7% expected by analysts demanded by Consensus Metrix.
Managing Director Craig Menear told the company’s earnings call Tuesday that “overall home improvement is solid” but noted that comparisons for the US Gulf Region were harder in the quarter due to Hurricane Harvey, the storm that hit the Texas area in 2017.  “While the quarter led the hurricanes of Florence and Michael, the extent of devastation was more compact from a geographical perspective.”
Home Depot Finance Manager Carol Tomé said the company logged $ 282 million in hurricane-related sales third quarter last year compared with about 150 million dollar this year. In the fourth quarter, the company will compete against approximately $ 380 million in hurricane sales made in the fourth quarter of a year ago.
“While we expect to get hurricane-related sales in the fourth quarter, do not expect to get $ 400 million in hurricane-related sales,” she says.
Home Depot said it now expects full-year revenue to grow by about 7.2 % from the previous year – or 5.5% when excluding the 53th week during the current fiscal year. The company expected sales to rise by approximately 7%, or about 5.3% excluding the extra week. The company expects the year’s profit to be $ 9.75 per share, compared to its previous forecast of $ 9.42 per share.
The higher performance guidance contains stronger activity on repurchase of shares. Home Depot said Tuesday now expects approximately $ 8 billion in repurchase of shares for the year . The company was expected to complete $ 6 billion in repurchase of shares.
Shares in Home Depot, by 7% compared with the previous year, fell 1.7% late monday smorgon.
Write to Allison Prang at allison.prang @ wsj.com