Home Depot (HD) 1Q18 Results: Beats on EPS, Misses on Revenues and Same-Store Sales

Executive Summary

• Home Depot reported 1Q18 EPS of $2.08, up from $1.67 in the year-ago quarter and ahead of the $2.05 consensus estimate. Total revenues were $24.95 billion, up 4.4% year over year but below the $25.17 billion consensus estimate.
• Total comps rose by 4.2% during the quarter, missing the 5.5% consensus estimate. Comps for US stores were up 3.9%. Comp growth was driven by a 5.8% increase in average ticket spend, which was partially offset by a 1.5% decline in customer transactions.
• Home Depot reaffirmed its FY18 EPS guidance of $9.31, reflecting 28% growth, while the consensus estimate calls for EPS of $9.43. The company expects revenue growth of 6.7%, reflecting comp growth of 5.0%. The consensus estimate calls for revenue growth of 6.8% and comp growth of 5.2%.