The Home Depot, Inc. (HD - Free Report) posted better-than-expected earnings results for second-quarter fiscal 2019, retaining its beat streak of more than five years. However, the company’s top line lagged estimates but improved year over year.
Its earnings were fueled by significant progress on strategic investments. Further, a favorable consumer environment in the United States and steady housing market aided its results.
However, the company slashed its sales and comparable sales (comps) view for fiscal 2019 on lumber price deflation and expectations of potential impacts of the newly enacted tariffs.
Shares of the home-improvement retailer moved up 0.5% in the pre-market session on mixed sentiments of an earnings beat and a sales lag, combined with a lowered sales view for fiscal 2019. Nonetheless, this Zacks Rank #3 (Hold) stock has gained 21% year to date, outpacing the industry’s growth of 13.1%.
Adjusted earnings of $3.17 per share grew 3.9% from $3.05 registered in the year-ago quarter. The bottom line also surpassed the Zacks Consensus Estimate of $3.08.