Home Depot (NYSE: HD) on Tuesday reported quarterly earnings that beat analysts' expectations and raised its sales outlook for the full year, showing little sign of slowing down despite concerns about tempering existing home sales hurting results.
HD reported earnings per share were $2.51 vs. $2.26 expected by experts. Revenue was $26.30 billion vs. $26.26 billion expected. Same-store sales were up 4.8% globally vs. growth of 4.7% expected
For much of the year, confidence in the U.S. housing market has been soaring, benefiting Home Depot and rival Lowe's (NYSE:LOW). But with mortgage rates climbing, attitudes had started to turn sour. This may lead to home prices rising at a slower rate and the market cooling down.
Still, Home Depot CEO Craig Menear said Wednesday there is continued "overall strength of demand in the home improvement market," prompting the company to hike its outlook for fiscal 2018.
Home Depot reported fiscal third-quarter net income of $2.9 billion, or $2.51 per share, up from $2.2 billion, or $1.84 per share, a year earlier.
Earnings per share came in better than the $2.26 expected by analysts.
Looking to the full year, Home Depot now expects sales to grow roughly 7.2%, up from a previous outlook of just 7%. It says same-store sales should be up 5.5%, up from 5.3%.
Analysts meanwhile anticipate Home Depot may have an opportunity to gain market share in the appliance category after Sears filed for bankruptcy protection and continues to shut stores.
Shares opened Tuesday down 42 cents to $174.01
