Home Depot Stock Surges As Revenue, Earnings Beat Analysts' Forecast

Home Depot Stock Surges As Revenue, Earnings Beat Analysts' Forecast

Home improvement retail behemoth, The Home Depot on Tuesday announced a $3.3 billion or 9.8% increase in third-quarter earnings for the fiscal year ending Oct. 31, compared to the prior-year period.

The company’s shares rose as much as 4% in the pre-market hours, registering the high of pre-market hours at $387.76 per share. 

The company reported sales of $36.8 billion for the reported quarter, beating the Wall Street expectations of $35.01 billion. Digital sales inched up 8% in the quarter. Executives said more sales came in October as compared to August and September.

Home Depot’s same-store sales were up by 6.1%, beating StreetAccount expectation of 2.2%. Same-store sales of items that cost over $1,000 soared 18% in the reporting quarter. Same-store sales in the U.S. increased 5.5 percent.

Net earnings in the third quarter increased to $4.13 billion, or $3.92 per share, corresponding to $3.43 billion, or $3.18 per share in the same period the previous year. Analysts surveyed by Refinitiv were seeing earnings per share to come at $3.40.

Home Depot

The social engagement for Home Depot stock amongst the users of Twitter and Reddit on the dashboard of Quantale will be printed as the day proceeds.

On Monday, the stock activity for Home Depot rose about 14% combined with an increase of more than 30% in the trading volume.  

3.65 million shares of the stock exchanged hands, 550 thousand above the average of 3.10 million. 

The shares of Home Depot stock opened its intraday at $382.00 apiece, up $7.61 apiece from its previous day close of $374.39 per share.

“As evidenced by our strong performance in the quarter, our team continues to do an outstanding job of operating with flexibility and agility,” said Craig Menear, chairman and CEO. 

“Ultimately, this is what has allowed us to respond to the elevated home improvement demand that has persisted. I would like to extend my sincere appreciation to our team, as well as our supplier, supply chain, and transportation partners, as we continue to navigate this dynamic environment together.”