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Home Depot's Third Quarter Earnings Report
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Home Depot (NYSE:HD) announced its results for the most recent quarter on November 13, 2012. The Home Depot is a home improvement retailer that sells an assortment of building materials, home improvement and lawn and garden products.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: Everything Investors Need To Know About Earnings
The Numbers: Home Depot beat expectations with its latest EPS and revenue figures. The company reported adjusted net income of 74 cents per share versus the 70 cents per share estimate and revenues of $18.1 billion versus the $17.81 billion estimate. Revenue climbed 4.5% from the same period last year. Home Depot's revenue has grown during each of the past four quarters on a year-over-year basis. Home Depot's profit for the third quarter was $947 million. This is 1.4% higher than the year-ago quarter. Last quarter marked the third in a row of rising net income.
Management Quote: "Our third-quarter results were better than we expected and reflected, in part, what we believe is the start of the path toward the healing of the housing market," said Frank Blake, chairman & CEO. "I particularly want to thank all of our associates who are helping the communities impacted by Hurricane Sandy. They are working under difficult circumstances, often with their own lives and homes disrupted by the storm, and their efforts exemplify our core values."
A Look Back: Net income has increased 17% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 31.9% from the year-earlier quarter.
Looking Ahead: When earnings estimates stay consistent leading up to earnings season, this usually shows analysts accurately predicted earnings estimates and business is stable. Be cautious though as this may also be a warnings sign that earnings could come at a huge surprise to the upside or downside as analyst did not correctly predict earnings. Steady earnings estimates mean there is not enough change going on with the company to make analysts change their opinions. When earning estimates are steady, investors can look at the revenue trend for a more fundamental indicator. The average estimate for the fiscal year is $2.97 per share, a rise from $2.95 90 days ago.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: Everything Investors Need To Know About Earnings
The Numbers: Home Depot beat expectations with its latest EPS and revenue figures. The company reported adjusted net income of 74 cents per share versus the 70 cents per share estimate and revenues of $18.1 billion versus the $17.81 billion estimate. Revenue climbed 4.5% from the same period last year. Home Depot's revenue has grown during each of the past four quarters on a year-over-year basis. Home Depot's profit for the third quarter was $947 million. This is 1.4% higher than the year-ago quarter. Last quarter marked the third in a row of rising net income.
Management Quote: "Our third-quarter results were better than we expected and reflected, in part, what we believe is the start of the path toward the healing of the housing market," said Frank Blake, chairman & CEO. "I particularly want to thank all of our associates who are helping the communities impacted by Hurricane Sandy. They are working under difficult circumstances, often with their own lives and homes disrupted by the storm, and their efforts exemplify our core values."
A Look Back: Net income has increased 17% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 31.9% from the year-earlier quarter.
Looking Ahead: When earnings estimates stay consistent leading up to earnings season, this usually shows analysts accurately predicted earnings estimates and business is stable. Be cautious though as this may also be a warnings sign that earnings could come at a huge surprise to the upside or downside as analyst did not correctly predict earnings. Steady earnings estimates mean there is not enough change going on with the company to make analysts change their opinions. When earning estimates are steady, investors can look at the revenue trend for a more fundamental indicator. The average estimate for the fiscal year is $2.97 per share, a rise from $2.95 90 days ago.
by
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