Home Depot stock jumps after big earnings beat, surprise same-store sales growth
Shares of Home Depot Inc. shot up 4.6% in premarket trading Tuesday, after the home improvement retailer reported fiscal first-quarter earnings that rose above expectations, surprise growth in same-store sales and raised its full-year outlook. Net income for the quarter to May 1 rose to $4.23 billion, or $4.09 a share, from $4.15 billion, or $3.86 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share the FactSet consensus of $3.69. Sales grew 3.8% to $38.91 billion, well above the FactSet consensus of $36.71 billion, while same-store sales increased 2.2% compared with expectations of a 2.9% decline. "Fiscal 2022 is off to a strong start as we delivered the highest first quarter sales in company history," said Chief Executive Ted Decker. For fiscal 2022, the company raised its EPS growth outlook to the mid-single digits percentage range from low single digits, and said it now expects total sales and same-store sales growth of about 3%, compared with previous expectations that they would be slightly positive. The stock has tumbled 28.7% year to date through Monday, while the Dow Jones Industrial Average has shed 11.3%.
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