Home Depot’s second-quarter earnings beat expectations, company stands by 2022 guidance

A customer wearing a protective mask loads lumber at a Home Depot store in Pleasanton, California, Feb. 22, 2021.

David Paul Morris | Bloomberg | Getty Images

Home Depot on Tuesday reported quarterly earnings and revenue that beat analysts’ expectations as the company cited continued strength in demand for home improvement projects.

“Our team has done a fantastic job serving our customers, while continuing to navigate a challenging and dynamic environment,” Home Depot CEO and President Ted Decker said in a statement.

Here’s what the Atlanta-based company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $5.05, adjusted, vs. $4.94 expected
  • Revenue: $43.79 billion vs. $43.36 billion expected

Same store sales rose 5.8% in the quarter, topping analyst expectations for growth of 4.9%, according to FactSet.

Total customer transactions in the period slipped to 467.4 million, from 481.7 million in the year-ago period, while average ticket grew 9% to $90.02 from $82.48. Professional contractors tend to make fewer visits and purchase in higher quantities.

Sales per retail square foot grew 5.7% compared to the same quarter last year.

During the pandemic, many people took on DIY projects to spruce up their living spaces as they spent more time hunkered down at home. Investors have been watching to see whether people are still prioritizing such projects in a tightening macroeconomic environment.

For the three-month period ended July 31, Home Depot said net income rose to $5.17 billion, up 7.6% from the prior year. Net sales grew 6.5% from a year ago, which the company said marked its highest-ever quarterly sales.

Home Depot said it still expects total sales for 2022 to grow about 3% from a year ago.

Shares of the company were down about 2% in pre-market trading.

This story is developing. Please check back for updates.