Home Depot (HD) hits 40-year high on Q3 earnings
16:41, 16 November 2021
Home Depot stock hit an all-time high Tuesday as the home improvement chain reported fiscal third-quarter earnings that beat analyst predictions.
As at 11:08 ET (UTC-5) shares were up 6% at $390.58. The company has been stock exchange-listed since 1981, when its shares first traded at $12 each on the Nasdaq. The Atlanta-based retailer now trades on the New York Stock Exchange under the ticker “HD”.
On an earnings call, Home Depot's CEO Craig Menear commented on the current unprecedented hiring and logistics environment.
Managing current environment
"We will use our experience, tools and scale to manage this environment with the intent to deliver a strong value proposition to our customers," Menear said on the call.
For the period ended 31 October, net earnings rose 20.3% to $4.13bn (£3.08bn) from $3.43bn a year earlier on sales which increased 9.8% to $36.82bn from $33.54bn in the third quarter of 2020.
On a per-share basis, Home Depot's earned $3.92 per share for the latest quarter, up 23.3% from the $3.18 per share it earned in the same period last year.
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Analysts saw EPS at $3.42
Analysts were expecting earnings per share of $3.42 on sales of $34.95bn, according to figures widely available on financial news sites.
"As evidenced by our strong performance in the quarter, our team continues to do an outstanding job of operating with flexibility and agility. Ultimately, this is what has allowed us to respond to the elevated home improvement demand that has persisted," Menear said in a press release.
Home Depot said overall same-store sales grew 6.1% with US same-store sales rising 5.5%. The average customer transaction – which Home Depot calls "ticket price" – rose 13% to $82.38 from $72.98.
At the end of the third quarter, Home Depot operated a total of 2,317 retail stores in the US, Canada and Mexico and had employed approximately 500,000 associates.