Home Depot (HD 165.35) took care of a lot of people's home repair business in the third quarter. In doing so, the company took care of its own financial business, topping analysts' average third quarter sales and earnings expectations and raising its outlook for fiscal 2017.
Few companies were in a position to benefit from the natural disasters in the third quarter like Home Depot was. The retailer did just that on the sales front, saying hurricane-related sales positively impacted comparable store sales growth by approximately $282 million.
Those hurricane-related sales, however, carried much lower gross margins than the company average. Notwithstanding the uptick in hurricane-related sales, Home Depot said its operating profit was negatively impacted by approximately $51 million in the third quarter.
Even with the dent to its operating profit, Home Depot still managed to report a 10% increase in its net earnings of $2.2 billion and a 15% increase in diluted earnings per share of $1.84.
The bottom-line growth was driven by the strong sales activity, which culminated in total reported sales of $25.0 billion, up 8.1% year-over-year, and an impressive 7.9% increase in comparable sales, which was accented by a 7.7% increase in comparable sales for U.S. stores.
Home Depot will hold a conference call at 9:00 a.m. ET to discuss its results. In the meantime, the company noted in its press release that it expects fiscal 2017 sales to be up approximately 6.3% and comparable sales to be up approximately 6.5%, versus prior guidance of up approximately 5.3% and 5.5%, respectively.
The home improvement retailer also raised its fiscal 2017 diluted earnings per share growth guidance to $7.36, up approximately 14%, from prior guidance of $7.29.
Shares of HD, which are up 23.3% year-to-date, are little changed in pre-market action. Lowe's (LOW 77.53), which is the company's primary competitor, will report its quarterly results before the market opens on Tuesday, November 2.