Home improvement retailer, The Home Depot, Inc.(HD) reported increased sales in their third quarter earnings, beating estimates on Monday..
The Atlanta, GA based company reported net income of $947 million, or 63 cents per share, a 1.3% increase over last years earnings of $934 million, or 60 cents per share. Excluding the closing of seven stores in China, the company reported earnings of 74 cents per share. Analysts expected 70 cents.
Revenue came in at $18.13 billion for the quarter, 4% increase over last years revenue of $17.33 billion, and beating analysts expectations of $17.93 billion.
HD reported that sales in stores that have been open at least a year increased by 4.3% in the US, and 4.2% globally. Additionally, it was reported that HD has increased their market share, obtaining a portion of Lowe’s(LOW) market share.
Looking ahead, the company expects revenue to increase by 5.2% for the year, previously expecting a 4.6% increase.Full year EPS is expected to be $3.03 per share, up from their previous estimate of $2.95 per share.
Home Depot shares were up $1.34, or 2.19% during pre-market trading Tuesday.
The Bottom Line
Shares of Home Depot (HD) have a 1.90% dividend yield, based on last night’s closing stock price of $61.10. The stock has technical support in the $57-$58 price area. If the shares can firm up, we see overhead resistance around the $64-$65 price levels.
The Home Depot, Inc.(HD)is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.