Home Depot share price up 1% after Q1 results revenue beat
The home improvement chain's stock rises after better-than-expected Q1 revenue.
Home Depot share price increased 1% after the home improvement store chain reported better-than-expected Q1 revenue.
Home Depot earnings: key figures
|Earnings per share||$2.27|
Home Depot's Q1 results revenue surpasses estimates
Home Depot’s Q1 earnings per share were $2.27, more than the $2.18 predicted by financial experts. Home Depot’s Q1 revenue was $26.381 billion, slightly above the projected $26.378 billion.
While Home Depot’s Q1 earnings and revenue beat expectations, the chain’s same-store sales only grew by 2.5%. Financial analysts predicted growth of 4.2%. The stagnant sales were likely caused by excess rain in February causing a decrease in lumber sales, according to Neil Saunders, managing director of research firm GlobalData Retail.
‘While the economy generally played ball, the weather did not and a very wet start to the year across many parts of the country meant that spending on items for outdoor projects was down considerably,' said Saunders.
Chief executive officer (CEO), Craig Menear, spoke about Home Depot’s Q1 profits in a statement.
‘We were pleased with the underlying performance of the core business despite unfavourable weather in February and significant deflation in lumber prices compared to a year ago,’ said Menear.
What is Home Depot’s guidance for Q2 earnings?
Home Depot’s Q2 earnings guidance is positive despite being caught in the US-China trade dispute. The retailer expects the US tariffs on Chinese goods to have a $1 billion effect on the company’s profits.
For fiscal year 2019, Home Depot predicts earnings per share to surge to $10.03. Home Depot’s revenue is expected to grow by 3.3% and same-store sales are expected to increase by 5%.
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