Home Depot Inc. (NYSE:HD) shares are trading higher Tuesday after the company reported second-quarter results that met expectations and reaffirmed its full-year guidance, issuing sales projections above Wall Street estimates.
What To Know: For the second quarter of fiscal 2025, Home Depot posted sales of $45.3 billion, up 4.9% from $43.2 billion a year earlier. Comparable sales increased 1.0%, with U.S. comparable sales rising 1.4%. Net earnings were $4.6 billion, or $4.58 per diluted share, compared with $4.6 billion, or $4.60 per diluted share, in the same quarter last year. Adjusted earnings came in at $4.68 per diluted share, slightly above last year's $4.67.
CEO Ted Decker said results were consistent with expectations, highlighting customer interest in smaller home improvement projects and continued market share growth. He credited the company's associates for executing well in a competitive environment.
Looking ahead, Home Depot reaffirmed its fiscal 2025 guidance, projecting total sales growth of about 2.8% and comparable sales growth of 1.0% for the 52-week year. The company expects gross margin near 33.4% and operating margin around 13.0%, with an adjusted operating margin of 13.4%. It anticipates adjusted diluted earnings per share to decline about 2% from last year's $15.24, while GAAP diluted EPS is expected to fall roughly 3% from $14.91 in fiscal 2024.
The company plans to open approximately 13 new stores and maintain capital expenditures near 2.5% of total sales. It ended the quarter with 2,353 retail stores and over 800 branches, employing more than 470,000 people across the U.S., Canada, and Mexico.
Shares traded higher as investors reacted to the reaffirmed outlook and sales guidance, which were seen as stronger than analysts' forecasts.
HD Price Action: Home Depot shares were up at 2.81% at $405.81 at the time of writing, according to Benzinga Pro.
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