Home Depot (HD) Reports In-Line Q2 EPS; Comps Outpace Expectations; Boosts FY15 Outlook

August 18, 2015 6:01 AM EDT

(Updated - August 18, 2015 6:02 AM EDT)

Home Depot (NYSE: HD) reported Q2 EPS of $1.71, in-line with the analyst estimate of $1.71. Revenue for the quarter came in at $24.83 billion versus the consensus estimate of $24.71 billion.

Comps rose 4.2 percent, versus estimates calling for a 3.5 percent gain.

Updated Fiscal 2015 Guidance

The Company has provided a range of sales, comp sales and diluted earnings-per-share growth to reflect the difference between 2014 average exchange rates and current exchange rates. The low-end of the Company's sales, comp sales and diluted earnings-per-share growth guidance reflects the U.S. dollar remaining at current foreign exchange rates.

Based on its year-to-date performance and to reflect the planned completion of the acquisition of Interline Brands, Inc., the Company raised its fiscal 2015 sales guidance and now expects sales will grow in a range of approximately 5.2 percent to 6.0 percent and comp sales will grow in a range of approximately 4.1 percent to 4.9 percent. The Company also raised its diluted earnings-per-share guidance for the year and now expects diluted earnings per share to grow in a range of approximately 13 percent to 14 percent from fiscal 2014 to $5.31 to $5.36.

*** The Street sees FY15 revenue of $87 billion and EPS of $5.27.

The Company's earnings-per-share guidance reflects the benefit of the Company's year-to-date share repurchases of $3.1 billion and the Company's intent to repurchase an additional $3.9 billion of shares during the remainder of the year for a total of $7.0 billion.

The Company's estimated probable losses related to the claims made by the payment card networks in connection with the data breach discovered in September 2014 are based on currently available information and expected payments associated with those claims. These estimates may change as new information becomes available or circumstances change. The accrual does not reflect liabilities from current and future civil litigation, governmental investigations and enforcement proceedings, which may have an adverse effect on the Company's financial results in a future period. The accrual also does not reflect future breach-related legal, consulting or administrative fees, which are expensed as incurred and not expected to be material in any individual period.

For earnings history and earnings-related data on Home Depot (HD) click here.

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