Home Depot Beats Expectations, Raises Guidance

Atlanta, GA, Aug. 18, 2009--Home Depot Inc. reported that its fiscal second-quarter profit fell 7 percent, as the home-improvement retailer shuttered its Expo business and continued to be squeezed by the recession.

However, the company's adjusted results beat Wall Street's expectations, and it lifted its guidance for full-year earnings from continuing operations.

Home Depot earned $1.12 billion, or 66 cents per share, for the period ended Aug. 2. That's down from $1.2 billion, or 71 cents per share, a year earlier.

Excluding Expo-related charges, profit was 67 cents per share, topping analysts' forecasts for 59 cents per share, according to Thomson Reuters. Home Depot had announced in January that it planned to close its 34 Expo Design Centers.

"Concerns about the housing market, rising unemployment and softness in the overall economy continue to pressure consumers," Chairman and CEO Frank Blake said in a press release.

Revenue dropped 9 percent to $19.07 billion from $21 billion, falling short of the $19.23 billion forecast of analysts polled.

Sales at stores open at least a year slid 8.5 percent.

Home Depot lifted its 2009 earnings from continuing operations forecast to flat to up 7 percent. Adjusted profit is expected to fall by 15 to 20 percent. Its prior guidance was for a 7 percent dip in earnings from continuing operations.

The retailer backed its expectation for revenue to be down about 9 percent.