Home Depot (HD) 2Q18 Results: Beats on EPS and Same-Store Sales, Raises Full-Year Outlook

Executive Summary

• Home Depot reported 2Q18 EPS of $3.05, up from $2.25 in the year-ago quarter and ahead of the $2.84 consensus estimate. Total revenues were $30.46 billion, up 8.4% year over year and ahead of the $30.03 billion consensus estimate.
• Total comps rose by 8.0% during the quarter, beating the 6.6% consensus estimate. Comps for US stores were up 8.1%. Comp growth was driven by a 4.9% increase in average ticket spend, to $66.20, and a 2.9% increase in customer transactions. Top-selling categories included lumber, indoor garden, outdoor garden and electrical.
• Home Depot raised its outlook for revenues and same-store sales for FY18. The company expects revenues to increase 7.0%, compared with the prior forecast of 6.5%, reflecting comp growth of 5.3%, up from previous guidance for 5.0% growth. The consensus estimate calls for revenue growth of 6.8% and comp growth of 5.2%. Home Depot now guides for FY18 EPS of $9.42 up from previous guidance of $9.31, while the consensus estimate calls for EPS of $9.43.