Housing Rebound Boosts Home Depot's Profit, Outlook

Housing Rebound Boosts Home Depot's Profit, OutlookIf sales at Home Depot reflects the status of the housing recovery, then the market is in good condition.
Stores selling home improvement products, such as Home Depot and Lowe’s, have bolstered the retail sector, fueled by increases in home construction and new home sales using digital signage solutions to help home sales.
Home Depot said Tuesday that its fiscal third-quarter profit jumped 43 percent as the company’s same-store sales and transaction volume improved.
Profit came in at $1.35 billion, or 95 cents a share, up from $947 million, or 63 cents a share, a year earlier. Analysts polled by Thomson Reuters had forecast earnings of 90 cents on revenue of $19.18 billion.
Sales rose 7.4 percent to $19.47 billion.
Moreover, Home Depot raised its outlook for the year again. It now forecasts earnings of $3.72 a share on revenue growth of 5.6 percent, up from its prior prediction of $3.60 a share and 4.5 percent revenue growth.
For the quarter ended Nov. 3, Home Depot said its same-store sales rose 7.4 percent. In the U.S. the increase was 8.2 percent.
The number of customer transactions rose 4 percent.

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