Home Depot Earnings Rise 21% in Third Quarter

Home DepotHome Depot Inc. (HD) said Tuesday a tight lid on expenses helped the largest U.S. home-improvement retailer's third-quarter net income rise 21 percent, despite a lackluster 1 percent revenue increase as home owners continue to hold back on bigger renovation projects.

The company trimmed its revenue guidance for the year but raised its expectations for earnings.

Net income rose to $834 million, or 51 cents per share, from $689 million, or 41 cents per share. That is better than the 48 cents per share analysts expected, according to a poll by Thomson Reuters.

Revenue edged up 1 percent to $16.6 billion from $16.36 billion. Analysts expected $16.59 billion. Revenue in stores open at least one year rose 1.4 percent.

It is the fourth consecutive quarter that figure was positive. It is considered a key indicator of a retailer's performance because it excludes growth at stores that open or close during the year.

"As the business stabilizes, we continue to improve our operational performance," said CEO Frank Blake in a statement.

Home Depot Inc. is trimming its guidance for revenue growth in the year to 2.2 percent from 2.6 percent. That implies revenue of $67.64 billion, still ahead of the $67.55 billion analysts expect.

But Home Depot, based in Atlanta, raised its earnings guidance to $1.94 per share from $1.90 per share. Analysts expect $1.90 per share.

On Monday, smaller rival Lowe's Cos. similarly reported its net income rose 19 percent as revenue rose 2 percent to $11.59 billion. Home owners aren't renovating as much due to fears about jobs and the economy.

Home Depot operates 2,244 stores worldwide with 300,000 employees.

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Theresa Milhimes

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November 17 2010 at 12:37 AM Report abuse rate up rate down Reply
debbie hunter

"the big orange" (home depot). I have to say after working for the home depot for 10 years and left them for reasons i will not disclose...i wish them luck in the future in hiring americans and giving them the exsperience i recieved. thanks to the home depot i have a better job now and took what i learned while working there and perfecting things i felt could have been better at home depot and i perfected them. great place to start for first job but not to make it a career.

November 16 2010 at 11:00 AM Report abuse rate up rate down Reply
Eddie Van Halen

Prices are good at Home Depot. Plenty of help and knowledge there. Obama does need to go

November 16 2010 at 10:21 AM Report abuse +1 rate up rate down Reply

As a remodeler I'm finding that HD is quick to raise their prices and as a result I spend much more time and money at Lowes than ever before.

November 16 2010 at 9:35 AM Report abuse rate up rate down Reply