Tuesday, November 15, 2011

Home Depot's 3Q net rises on storm boost (AP)

ATLANTA ? Spending on home projects and storm-related repairs helped boost Home Depot Inc.'s third-quarter net income 12 percent, the home-improvement retailer said Tuesday.

Home-goods sellers are facing cautious consumer spending and a weak housing market. Atlanta-based Home Depot Inc.'s smaller rival Lowe's Cos. reported Monday its third-quarter net income fell 44 percent on restructuring costs.

But Home Depot fared better. Its results beat expectations and the company raised its 2011 earnings outlook and its dividend.

"Our third quarter was driven by strength in our core categories and storm-related sales as well as strong operating performance," said CEO Frank Blake in a statement.

The No. 1 U.S. home-improvement retailer's net income rose 12 percent to $934 million, or 60 cents per share. That compares with $834 million, or 51 cents per share, last year.

Revenue rose 4 percent to $17.33 billion from $16.6 billion last year.

Analysts polled by Thomson Reuters expected net income of 59 cents per share on revenue of $17.11 billion, according to Fact Set.

Revenue in stores open at least a year rose 4.2. percent globally and 3.8 percent in the U.S. The measure is considered a key gauge of a retailer's fiscal health because it excludes stores that open or close during the year.

The company now expects net income of $2.38 per share for the year, from August guidance of $2.34 per share. It reiterated it expects revenue to rise 2.5 percent, implying revenue of $69.7 billion. Analysts expect earnings of $2.36 per share on revenue of $69.66 billion.

Home Depot also raised its dividend to by 4 cents to 29 cents. The dividend is payable on Dec. 15 to shareholders of record as of Dec. 1.

Source: http://us.rd.yahoo.com/dailynews/rss/earnings/*http%3A//news.yahoo.com/s/ap/20111115/ap_on_bi_ge/us_earns_home_depot

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