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A shopper leaves a Home Depot in Alexandria, Virginia.
Alex Wong / Getty Images
Shares of
Home depot
rose on Tuesday after the company reported third-quarter earnings that beat expectations thanks to continued demand for home improvement amid a strong housing market.
Shares of the No. 1 home improvement retailer rose more than 5% to $ 391.45 on Tuesday afternoon after the company said in a earnings call with investors that they will continue to focus on meeting demand and do not expect it to slow down. up at some point soon.
“Demand continues to remain strong,” CEO Craig Menear said during the call. “Customers keep telling us they have projects on their list. Professionals tell us their backlog is significant.”
The company’s revenue increased 9.8% to $ 36.82 billion, well above the $ 34.95 billion FactSet consensus. Same-store sales grew 6.1%, hitting consensus on 2.4% growth, while same-store sales rose 5.5% to peak expectations of a 2.3% increase.
Net income for the quarter ended Oct. 31 rose to $ 4.13 billion, or $ 3.92 per share, from $ 3.43 billion or $ 3.18 per share in the same period last year.
Analysts surveyed by FactSet expected that Home Depot would earn $ 3.41 per share. share of revenue of $ 34.8 billion in the third quarter. Home Depot earned $ 4.53 in the previous quarter and $ 4.02 per share in the same period last year, according to FactSet.
Home Depot is among the major U.S. retailers that have chartered their own container vessels in recent months to move goods from abroad. An increase in total sales, including major ticketing products, including appliances and vinyl flooring and other installation services, could also help mitigate higher costs, analysts at Raymond James said in a research note Tuesday morning.
Raymond James rated the company’s stock Outperform, with analysts saying sales overall were boosted by inflation and may continue to do so.
Read more: It’s a big week for retail. Here’s what you need to know.
The stock, which surpassed its record high of $ 372.63 on November 12, has risen 39.7% year to date through Monday, while the stock
has risen 17.9 per cent.
Write to Logan Moore at logan.moore@barron’s.com
.
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