Home Depot posts First Quarter Profit Topping Analysts’ Estimates
Home Depot Inc has posted a 14.5% rise in quarterly profit. The world's largest home improvement chain by sales witnessed the rise majorly because customers in North America have spent more money in home repairs after harsher winters.
Home Depot reported that its total comparable sales increased 6.1% in the first quarter ended on May 3. The company's net income jumped to $1.58 billion or $1.21 per share from $1.38 billion, or $1.00 per share, a year earlier.
The Atlanta-based company said that they have also been benefitted from steady rise of US housing prices and the early arrival of warm weather. Spring season is the most profitable season for the company. In fact, it is more revenue generating than Christmas for Home Depot.
"We had a stronger-than-expected start to the year as we experienced a more normal spring across much of the country and continued recovery of the U.S. housing market", affirmed Chief Executive Officer Craig Menear.
The company has estimated this year's profit per share between $5.24 and $5.27, which is up from the previous forecast. Factors behind the increased projections are the audit benefit and the assumption that the US dollar will remain at current exchange rates.
Analysts affirmed that the higher estimations is a positive sign. The company has gained 8.9% this year through Monday in comparison to 6.2% increase for Lowe's Cos.
Out of the all housing data points, the company focuses most on residential real estate prices. It is because America's 74 million homeowners prefer to spend more on their homes. National Association of Realtors affirmed that the median price of a single-family home increased 7.4% in the first three months of the year.
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