How The Home Depot, Inc.(HD) Ended Up With Such a Great Performance?

The Home Depot, Inc. (NYSE:HD) came up with its second-quarter earnings report, which is much better than Street’s expectations. Peter Keith, Senior Analyst at Piper Jaffray  discussed The Home Depot, Inc. (NYSE:HD)’s growth across various geographies and other aspects of its results on CNBC, recently.

The Home Depot, Inc. (NYSE:HD)

“It’s really a solid quarter, above expectations. What was nice, is that it was strength across the board and that would be geography across categories and, I think, it really just well defines the strength of the management team and the power of solid execution. [...] I think to a certain degree it, certainly, wouldn’t be immune to a slowdown, but when you look down at the strength across categories, they are still doing a lot of work inside the store to optimize the space, you look at a category like appliances that they have sold for years and that was up double digits in the second quarter [...],” Keith said.

Keith mentions that he will be looking for The Home Depot, Inc. (NYSE:HD)’s out-performance in the overall housing space. The Home Depot, Inc. (NYSE:HD) surprised the Street when it announced second quarter sales of $23.8 billion, up 5.7% year on year and better than what analysts were expecting. The best part was the company’s comparable-store sales growth, which were higher 5.8%  overall and 6.4% higher for U.S. based stores. Net income of The Home Depot, Inc. (NYSE:HD) rose to $2.05 billion,  14%  more than the same quarter last year.

“[...] I think that there has been some concern about housing metric slowing for the last 12 months, which is fair, you have seen housing turnover slow and so you have seen the multiple compressed. You have not seen earnings come down, in fact earnings estimates have only gone up. So, as we look forward, I think, you are going to see the housing turnover number stabilize and you will see investors begin to come back to The Home Depot, Inc. (NYSE:HD) [...],” Keith added.

Disclosure: None

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!