Home Depot's Stock Jumps 5% On Record Q1 Sales| MENAFN.COM

Saturday, 02 July 2022 05:29 GMT

Home Depot's Stock Jumps 5% On Record Q1 Sales


(MENAFN- Baystreet.ca) Home Depot's Stock Jumps 5% On Record Q1 Sales

Home Depot (HD) raised its full-year guidance after reporting its strongest first-quarter sales on
record.

The company's stock was up nearly 5% in premarket trading following the release of Q1
numbers that showed the home improvement retailer's earnings per share totaled $4.09 U.S.
compared to $3.68 U.S. expected on Wall Street. First-quarter revenue amounted to $38.91
billion U.S. versus $36.72 billion U.S. that had been expected by analysts.

Home Depot announced first-quarter net income of $4.23 billion U.S., up from $4.15 billion U.S.
a year earlier. Net sales rose 3.8% to $38.91 billion U.S., topping expectations of $36.72 billion
U.S. Same-store sales increased 2.2% during the January to March period.

However, despite the strong Q1 results, Home Depot's management warned that rising interest
rates could result in a slowdown in the North American housing market and delays to home
improvement projects.

That said, the first-quarter results show that consumers are still willing to spend money on their
homes, and the company said it doesn't expect that trend to reverse anytime soon.

For 2022, Home Depot is now forecasting sales growth of 3% and earnings per share growth in
the mid-single digits. The company previously forecast“slightly positive” sales growth and
earnings per share growth in the low-single digits.

Year to date, Home Depot's stock has fallen 28% to trade at $295.99 U.S. a share.

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