Home Depot (HD) announced its quarterly results on Tuesday August 16, 2016 as its earnings and revenue met predictions, as the world’s biggest home upgrading retailer continued to reap the benefits of a strong housing market.
The retailer equally repeated its sales outlook for the year, and upped its earnings forecast. Home Depot shares though remained steady in pre-market trading.
“It’s a good quarter but it does not deliver the upside that we’ve seen from Home Depot over the past few quarters,” Oppenheimer senior analyst Brian Nagel told CNBC’s “Squawk Box.”
The Giant retailer posted earnings of $1.97 per share that was in line with predictions made by the analysts from Thomson Reuters. Revenue likewise dropped basically in line with analysts’ predictions, at $26.47 billion. Analysts were expecting Home Depot to produce $26.49 billion in revenue,
In the similar period last year, Home Depot posted $1.71 per share on sales of $24.83 billion.
“We had a solid quarter, achieving the highest quarterly sales and net earnings results in company history as housing continues to be a tailwind for our business,” CEO Craig Menear said in a statement.
The Company said global same-store sales surged 4.7% during the quarter, in contrast with Wall Street’s prediction for 4.8% growth. U.S. comparable sales rose 5.4%, in contrast with Thomson Reuters’ estimate of 5.2% growth.
“Relatively speaking especially for a company of this size to put up a 5.4 percent comp is pretty good,” Nagel said. “As the market comes to this realization they’re going to say, well, this is still one of the very best places in retail to be.”
Meanwhile Home Depot reiterated its sales outlook for the full-year, after the decent results. The company is now looking for a 6.3 surge lift in revenue over last year’s $88.52 billion. It had in the past called for sales growth between 5.1% and 6%.
The company raised its earnings outlook to $6.31 a share, up from $6.27 a share.