Home Depot Q1 earnings report: ‘it’s a very solid report’

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Home Depot Inc (NYSE: HD) opened more than 3.0% up in the stock market this morning after the home improvement retailer reported strong results for its fiscal Q1 and raised its guidance for the full year.

Notable figures in Home Depot Q1 earnings report

  • Net income printed at $4.23 billion versus the year-ago figure of $4.15 billion.
  • Per-share earnings of $4.09 were better than $3.86 in Q1 of the previous year.
  • Sales jumped 3.8% YoY to $38.91 billion in the recent fiscal quarter.
  • FactSet consensus was for $3.69 of EPS on $36.71 billion in sales.
  • Ended Q1 with 2,316 retail stores in total, as per the earnings press release.

Same-store sales noted an unexpected 2.2% increase in Q1. Experts had anticipated a 2.9% decline instead. Home Depot’s report is particularly impressive as it was up against last year’s record growth.

Future outlook and analyst’s remarks

For the full financial year, Home Depot now forecasts a 5.0% growth in its EPS and a 3.0% increase in sales. It expects operating margin to stand at 15.4% in 2022. Discussing the earnings report on CNBC’s “Squawk Box”, Oppenheimer’s Brian Nagel said:

It’s a very solid report from Home Depot. The key here is the sales growth. There were concerns around home improvement spending. But the tone of the release and then the guidance suggests here’s a company that expects this strength to persist through 2022.

The stock is still down nearly 25% for the year.

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Source: https://invezz.com/news/2022/05/17/home-depot-q1-earnings-report-its-a-very-solid-report/