Investing.com -- Home Depot reported better-than-expected third-quarter results on Tuesday, sending shares up 1% in early trading.
The world's largest home improvement retailer posted adjusted earnings per share of $3.78, surpassing analyst estimates of $3.64. Revenue for the quarter came in at $40.22 billion, beating the consensus estimate of $39.27 billion and representing a 6.6% increase YoY.
Despite the revenue growth, comparable sales for the third quarter decreased 1.3%, with U.S. comparable sales down 1.2%. The company attributed the sales beat to normalized weather conditions and hurricane-related demand.
"While macroeconomic uncertainty remains, our third quarter performance exceeded our expectations," said Ted Decker, chair, president and CEO of Home Depot (NYSE:HD).
Home Depot raised its full-year outlook, now expecting total sales to increase approximately 4%, up from its previous guidance of 2.5% to 3.5%. The company projects adjusted earnings per share of $15.25 for fiscal 2024.
The retailer's operating margin for the quarter was 13.5%, compared to 14.3% in the same period last year. Adjusted operating margin stood at 13.8%, down from 14.5% in the prior-year quarter.
Reacting to the report, analysts at Citi said that overall, it was "a better than expected print when market expectations were already expected a slight SSS beat."
Telsey Advisory Group said they believe "the business is bottoming and has upside from here on out, as comparisons ease and the Federal Reserve is on an easing monetary cycle, which should spur demand in the industry down the line given lower interest rates."
Lastly, DA Davidson analysts said that with the results at least in line with expectations and "probably a tad better," they think HD’s stock "should continue the outperformance we’ve seen in 2H24."