Home Depot Raises Earnings Outlook

Atlanta, GA, Nov. 17, 2009--Home Depot said its third-quarter earnings fell 8.9 percent as the housing and renovation markets remained weak.

However, the company also raised its full-year earnings outlook as the quarter's earnings topped expectations. CEO Frank Blake said the company has seen signs of stabilization in real estate and has added market share in the quarter.

Home Depot and other home-improvement retailers have faced sales declines as consumers hold back on do-it-yourself projects amid worry over jobs and home values.

Net income was $689 million, or 41 cents per share, for the quarter ended Nov. 1.

Revenue fell 8 percent to $16.36 billion.

Sales at stores open at least a year fell 6.9 percent. That figure is considered a key measurement for retailers because it excludes the effect of store expansions or closings.

For the full year, Home Depot now expects earnings per share from continuing operations of about $1.50. That would be a 9.5 percent increase from last year, better than the company's previous expected range of flat to up 7 percent.

"There is still a great deal of pressure in the housing and home-improvement markets, though there are some positive signs of stabilization," Chairman and Chief Executive Frank Blake said in a statement on Tuesday.