The Home Depot Q3 Results Surpass Estimates

Home improvement retailer The Home Depot (HD) has delivered better-than-expected results for the third quarter of fiscal 2021 (ended October 31, 2021) on the back of growth in revenues.

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During the quarter, net earnings jumped 23.3% year-over-year to $3.92 per share and surpassed analysts’ expectations of $3.33 per share. Similarly, revenues increased 9.8% year-on-year to $36.8 billion, topping the Street’s estimate of $34.5 billion.

Comparable sales were up 6.1%, and comparable sales in the U.S. surged 5.5%. Though customer transactions declined 5.5% in the third quarter, the average purchase ticket size increased 12.9% to $82.38 from $72.98 in the year-ago period.

The Home Depot ended the third quarter with 2,317 retail stores spread across the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. (See Home Depot stock charts on TipRanks)

The Chairman and CEO of Home Depot, Craig Menear, said, “As evidenced by our strong performance in the quarter, our team continues to do an outstanding job of operating with flexibility and agility.”

Wall Street’s Take

Overall, the Street has a Strong Buy consensus rating based on 11 Buys and 2 Holds. The average Home Depot price target of $369 implies about 0.6% upside potential from current levels.

Website Traffic

TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Home Depot’s performance.

The Home Depot website traffic record an 11.6% monthly decrease in visits in October against the same period last year. Meanwhile, year-to-date website traffic has grown 9.2%.