Home Depot Beats the Street on Profit and Comparable Sales

Home Depot Inc, the largest home improvement chain in the world, posted comparable sales as well as profit for the quarter that was better than had been expected. The company said on Tuesday that demand increased across the board.

Home Depot, which also increased its forecast for sales along with profit for is full fiscal year that ends on January 2017, saw its shares increase 2% in premarket trading.

The company said in a prepared statement that its strong beginning to 2016 was aided by demand spikes week to week due to weather variability that resulted in its entire business growing, which includes appliances, garden products and building materials.

Housing starts in the U.S. hit the highest levels over the past five months last February, but dropped more than had been expected during March. Data for the month of April, due on Tuesday afternoon, is expected to have a strong increase.

One analyst said that February was the strong month during the quarter as warm weather in many different areas of the country helped sales.

March was also strong, but April slowed down with normal weather for spring affecting sales somewhat. Nevertheless, the analyst said April was overall positive.

Sales at U.S. stores of Home Depot open for 13 months or longer were up 7.4% during the three-month period that ended on May 1. That figure was above the analyst forecast of 4.9%.

Net income was up ending the quarter at $1.8 billion equal to $1.44 a share compared to last year during the same quarter of $1.58 billion equal to $1.21 a share. Net sales increased 9% ending at $22.75 billion.

Analysts on the average expected earnings for Home Depot for the quarter of $1.36 a share on revenue of just over $22.38 billion.

Home Depot announced that it is expecting earnings for the full year of $6.27 a share, with sales overall growing 6.3% and sales at comparable stores increasing 4.9%.

The company previously had forecast that its earnings would be between $6.12 and $6.18 a share with sales growth overall of between 5.1% and 6% with growth in comparable sales reaching to between 3.7% and 4.5%.

More and more homeowners are using the do-it-yourself method to repair and improve their homes, as a way to save money during what still appears to be a somewhat sluggish economy due to world economies such as China pulling down on the U.S.

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