Home Depot Tops Expectations, Goldman Expects Positive Market Reaction
2022.08.16 16:06
Home Depot (HD) Tops Expectations, Goldman Expects Positive Market Reaction
By Senad Karaahmetovic
Home Depot (NYSE:HD) reported results for the second quarter that beat the average analyst estimate, although its shares are down 0.6% in premarket Tuesday.
HD reported earnings per share of $5.05 on revenue of $43.79 billion, which is better than the consensus of EPS of $4.98 on sales of $43.57 billion. Comparable sales came in at +5.8%, again better than the average analyst estimate of +4.56%.
The company also reiterated its full-year forecast that calls for comparable sales rising +3%.
A Goldman Sachs analyst expects shares to react positively “given the top and bottom line beats and maintained 2022 guidance.”
“We think this quarter’s results and any insight into Q3 provided on the call will alleviate some investor concern around the health of the category into the second half of 2022,” she added in a client note.
A Credit Suisse analyst said the maintained guidance is “impressive in light of the continued slowing of existing home sales, with turnover typically spurring some repair and remodeling activity.”
An analyst from Telsey Advisory Group also reflected positively on the results.
“Home Depot should remain a winner in retail, given its best-in-class execution, digital prowess, and hybrid work-from-home arrangements causing more maintenance and repair activity,” the analyst wrote in a note.
HD shares remain over 20% down YTD.
