Home Depot Inc. reported stronger-than-expected quarterly results and raised its fiscal-year outlook for the third time in six months as the world’s largest home improvement chain gained market share from smaller rival Lowe’s Cos. Inc.
Home Depot also raised its quarterly dividend by 16 per cent to 29 cents per share.
Profit rose to $934-million, or 60 cents a share in the third quarter ended on Oct. 30, from $834-million, or 51 cents a share, a year earlier.
Analysts on average were expecting a profit of 58 cents a share, according to Thomson Reuters I/B/E/S.
Sales rose 4.4 per cent to $17.33-billion, beating the analysts’ average estimate of $17.12-billion.
The news came on Tuesday, the day after Lowe’s also beat quarterly profit estimates and laid out a blueprint to win back shoppers from its larger competitor.
In the third quarter, Home Depot’s sales at stores open at least a year rose 4.2 per cent globally, including a 3.8 per cent rise in the United States. This was the 10th consecutive quarter that the company has outshone Lowe’s, whose same-store sales rose 0.7 per cent in the quarter.
For the fiscal year, Home Depot sees earnings of $2.38 a share, up from its prior outlook of $2.34.