Home Depot Beats Analysts’ Earnings Estimations, Same-Store-Sales Climb (HD)

PUBLISHED: Aug 14 2012 @ 08:50 | Comments (0) | More info about Ed Liston

World’s biggest home improvement chain, Home Depot (NYSE:HD) reported better-than-expected fiscal second-quarter earnings on Tuesday as sluggish sales were overcome by company’s ongoing cost cutting drive.

The company has also upwardly revised its full-year earnings outlook.

For the period, company’s net earnings stood at $1.53 billion or $1.01 a share, up from $1.36 billion, or 86 cents a share, in the year earlier quarter.

Analysts polled by Thomson Reuters forecasted earnings of 97 cents a share for the period.

Sales in the second quarter were disappointing as it stood at $20.57 billion against analysts’ forecast of $20.74 billion.

However, sluggish sales were offset by company’s swift response. The company not only implemented cost cutting measures but also reintroduced its localized marketing and merchandizing tactics.

In addition, marked improvement in housing markets in some of the regions all boosted Home Depot’s sales.

Meanwhile, company’s same-store-sales climbed 2.1% in the second quarter. In the U.S., same-store sales rose 2.6%.

Buoyed by strong results, the company now expects its full-year sales to climb by 4.6 percent even as it boosted its outlook on full-year earnings to $2.95 a share from earlier estimations of $2.90 a share.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.