Home Depot has just shared Q2 2022 earnings that were stronger than the expectations of the analysts. After sharing the earnings results, the share prices for the home-improvement retailer have experienced a significant push.
Home Depot Shares Jumped 5.36%
In the recent stock market trading session, share prices for Home Depot have jumped 5.36%. The share prices for Home Depot surged higher as it reported earnings that were stronger than the analysts’ expectations.
In addition to the strong earnings, Home Depot also shared strong guidance for the upcoming quarter and for the entire year.
Following the jump, Home Depot’s share prices have risen to $319.11 a share. For the same quarter, Home Depot recorded a decline in customer transactions.
It reported that the drop rate it recorded in the transactions volume was 3%. The investors had expected that in the light of the decline in transaction volume, its full-year guidance would be less.
However, the guidance was strong, which proved to be traction for the investors and they rallied in the company’s favor.
Home Depot Earnings vs. Estimations
Home Depot reported that in the second quarter, it generated sales worth $43.8 billion. The home-improvement retailer posted that its sales had surged 6.5% compared to the past year’s quarter.
The expectations data was reportedly shared by the analysts at FactSet. They had predicted that Home Depot would generate sales worth $43.4 billion translating to $4.95 per share.
A year back in the same quarter, Home Depot had generated sales worth $41.1 billion, translating to $4.53 per share.
The analysts had also predicted that the same-store sales for the home-improvement retailer would rise by 4.9%. However, the sales jumped 5.8%.
As for the US same-store sales, the estimation was low but the actual sales jumped 5.4%. It is quite astonishing that US same-store sales surged although a slowdown was recorded in the housing market.
Achievement for Home Depot
Home Depot claimed that the earnings and sales they generated in the second quarter of 2022 were the highest. The second quarter earnings they recorded were the highest in any quarter in the history of their company.
The president and the chief executive officer at Home Depot, Ted Decker was glad that their company had made a new achievement.
He remarked that the company has been demonstrating its determination in providing its customers with the most advanced and convenient home improvements.
Their projects have continued growing in strength and they are looking forward to a stronger year.
Fiscal Year Guidance
For the fiscal year, Home Depot has reported that it expects its sales to grow by 3%. As for the earnings, they are expected to grow by 5%. The consensus they have shared for earnings is $16.30 per share.