Surging home sales boost Home Depot earnings

Kim Hjelmgaard , USA TODAY 1:40 p.m. EDT August 20, 2013


Home Depot will report earnings Tuesday.(Photo: Wilfredo Lee, AP)

Story Highlights

  • DIY retailer raises earnings outlook
  • Pre-market shares rise
  • Home Depot cites improved housing market


Home Depot's net income jumped 18%. The Atlanta-headquartered retailer raised its full-year earnings and revenue expectations.

"The second quarter results exceeded our expectations as our business benefited from a rebound in our seasonal categories, continued strength in the core of the store and the recovering housing market in the U.S.," said Frank Blake, chairman and chief executive, in a statement.

For the three months ended Aug. 4, Home Depot earned $1.8 billion, or $1.24 per share. That compares with $1.53 billion, or $1.01 a year ago. Revenue for the company climbed more than 9% to $22.52 billion, from $20.57 billion. Analysts expected earnings of $1.21 per share on revenue of $21.79 billion.

On Friday, investors will be watching for the July new home sales report. Builder confidence in July reached an eight-year high and has been trending up for the past two years.

http://www.usatoday.com/story/money/markets/2013/08/20/home-depot-results/2675527/