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Aug. 16, 2022, 6:32 a.m. EDT

Home Depot profit and record sales beat expectations and full-year outlook affirmed, but stock turns lower

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By Tomi Kilgore

Shares of Home Depot Inc. /zigman2/quotes/208081807/composite HD -0.86% erased earlier gains to drop 2.5% in premarket trading Tuesday, even after the home improvement retail giant reported fiscal second-quarter profit, record total sales and same-store sales that all rose above expectations and affirmed its full-year outlook. Net income for the quarter to July 31 increased to $5.17 billion, or $5.05 a share, from $4.81 billion, or $4.53 a share, in the same period a year ago, to beat the FactSet consensus for earnings per share of $4.95. Sales grew 6.5% to $43.79 billion, above the FactSet consensus of $43.36 billion. Overall same-store sales increased 5.8% to beat the FactSet consensus for 4.9% growth, and same-store sales in the U.S. rose 5.4% to top expectations of a 4.8% rise. Cost of sales rose a little more than sales, increasing 5.5% to $29.31 billion as gross margin contracted to 33.1% from 33.2%. "Our performance reflects continued strength in demand for home improvement projects," said Chief Executive Ted Decker. For fiscal 2022, the company affirmed its guidance for sales growth of approximately 3.0%, and its EPS growth outlook of mid-single digits percentage range. The stock has gained 6.3% over the past three months through Monday, while the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -1.71% has advanced 5.2%.

/zigman2/quotes/208081807/composite
US : U.S.: NYSE
$ 275.94
-2.39 -0.86%
Volume: 4.79M
Sept. 30, 2022 4:00p
P/E Ratio
16.96
Dividend Yield
2.75%
Market Cap
$282.49 billion
Rev. per Employee
$316,427
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
28,725.51
-500.10 -1.71%
Volume: 320.97M
Sept. 30, 2022 5:55p
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