Post Earnings Coverage as Home Depot’s Sales Jumped 4.9%; EPS Surged 16%

Upcoming AWS Coverage on Floor & Decor Post-Earnings Results

LONDON, UK / ACCESSWIRE / June 1, 2017 / Active Wall St. announces its post-earnings coverage on The Home Depot, Inc. (NYSE: HD). The Company reported its first quarter fiscal 2017 financial results on May 11, 2017. The world’s largest home improvement retailer beat quarterly revenue and earnings estimates and raised its profit forecasts for the year. Register with us now for your free membership at:

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One of The Home Depot’s competitors within the Home Improvement Stores space, Floor & Decor Holdings, Inc. (NYSE: FND), disclosed on May 25, 2017, its financial results for Q1 FY17, which ended on March 30, 2017. AWS will be initiating a research report on Floor & Decor in the coming days.

Today, AWS is promoting its earnings coverage on HD; touching on FND. Get our free coverage by signing up to

http://www.activewallst.com/register/

Earnings Reviewed

For the three months ended April 30, 2017, Home Depot reported sales of $23.89 billion, reflecting a 4.9% from Q1 2016 sales of $22.76 billion. The Company’s revenue numbers surpassed analysts’ consensus of $23.80 billion. Home Depot’s worldwide comparable store sales for the reported quarter were positive 5.5% , and comp sales for US stores were positive 6.0%, slightly below the Company’s Q4 2016 sales growth of 5.8% worldwide and 6.3% in the United States.

During Q1 017, Home Depot’s gross totaled $8.15 billion, up 4.7% compared to gross profit of $7.79 billion in Q1 2016, primarily driven by higher sales. However, the Company’s gross profit margin narrowed 10 basis points (bps) to 34.1%. Home Depot’s operating income grew 8.8% to $3.35 billion for the reported quarter, while operating margin totaled 14%, up 50 basis points compared to the year ago same quarter.

Home Depot’s net earnings for Q1 2017 were $2.0 billion, or $1.67 per diluted share, compared with net earnings of $1.8 billion, or $1.44 per diluted share, in Q1 2016. For the reported quarter, diluted earnings per share increased 16.0% on a y-o-y basis. The Company’s earnings numbers surpassed Wall Street’s expectation of $1.62 per share.

“We were pleased with our results as they reflected broad-based growth across our interconnected platform and all geographies,” said Craig Menear, the Company’s Chairman, CEO, and President, “This was made possible by our hard working store associates, merchants and supply chain teams and our continued dedication to customer service.”

Balance Sheet and Cash Flow

As of April 30, 2017, Home Depot had cash and cash equivalents of $3.57 billion, while its long-term debt totaled $22.39 billion. In Q1 2017, the Company generated $4.56 billion of net cash from operations.

Dividend

In a separate press release on the same day of its earnings, Home Depot announced that its board of directors declared a first quarter cash dividend of $0.89 per share. The dividend is payable on June 15, 2017, to shareholders of record on the close of business on June 01, 2017. This is the 121st consecutive quarter the Company has paid a cash dividend.

Fiscal 2017 Guidance

Based on its year-to-date performance, the Company reaffirmed its fiscal 2017 sales growth guidance and expects sales will be up approximately 4.6% and comp sales will be up approximately 4.6%. The Company also raised its diluted earnings-per-share growth guidance for the year and now expects diluted earnings-per-share growth after anticipated share repurchases of approximately 11.0% from FY16 to $7.15.

Stock Performance

The Home Depot’s share price finished yesterday’s trading session at $153.51, slightly sliding 0.24%. A total volume of 7.16 million shares exchanged hands, which was higher than the 3 months average volume of 4.05 million shares. The stock has surged 4.66% in the last three months, 17.51% in the past six months, and 16.19% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 14.49%. The stock is trading at a PE ratio of 22.96 and has a dividend yield of 2.32%. The stock currently has a market cap of $185.38 billion.

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