The world’s biggest home improvement retailer Home Depot Inc.(NYSE:HD) released third quarter results on Tuesday morning. Stock price rose 4.10% to $125.80 after Home Depot beats last quarter earnings guidance.
Total revenues for the third quarter was $21.8 billion which increased 6.34% compared with $20.5 billion last year. Net income for the third quarter increased 13.33% to $1.7 billion compared with $1.5 billion last year. Diluted earnings per share rose 17.39% to $1.35 compared with $1.15 last year.
"During the quarter, we saw broad-based growth across our geographies and product categories, led by growth in transactions from both our DIY and Pro customers," said Craig Menear, chairman, CEO and president. "I would like to thank our associates for their hard work and dedication to our customers."
Based on the third quarter earnings report, Home Depot expects total revenues of fiscal year 2015 increase 5.7%. The Company also expects diluted earnings per share of fiscal year 2015 rose 14% to $5.36. This guidance assumes that currency rate remains the same through fourth quarter. Home Depot also announced that its plans to repurchase about $2 billion in shares in the coming final quarter, bringing the total for the year to $7 billion.
Even though the retail environment is downturn, Home Depot still remain stable growth. Customers are more willing to spend money on replacing windows and improve countertops, rather than spend money on fashion and daily goods. The continuing increase of housing market is saving Home Depot from retail recession which has not fully recoverd as of yet.
Home Depot still has to deal with the aftermath of a widespread data breach last year, which resulted in $20 million in pre-tax costs in the third quarter. The company announced it faces several dozen civil lawsuits on the issue that millions of customers’ credit-card information and emails were exposed. To prevent futures breaches, Home Depot has completed a project to protect customers’ credit-card information.