Home Depot 2Q net income rises on storm repairs

[August 16, 2011]  ATLANTA, Ga. (AP) -- Home Depot Inc.'s second-quarter net income rose 14 percent as shoppers picked up lawn and garden products and made storm-related repairs during the summer, company said Monday. It also raised its earnings guidance.

The increases stood in contrast to smaller rival Lowe's, which a day earlier blamed bad weather for its flat second-quarter earnings and cut its revenue forecast.

The nation's largest home-improvement retailer's net income rose to $1.36 billion, or 87 cents per share, during the three months ended July 31. That's up from $1.19 billion, or 72 cents per share, in the same period last year.

Analysts expected net income of 83 cents per share, according to FactSet.

Revenue rose 4 percent to $20.23 billion. Analysts predicted $19.97 billion. Revenue in stores open at least a year rose 4.3 percent globally and 3.5 percent in the U.S. The measure is considered a key gauge of a retailer's financial health because it excludes stores that open or close during the year.

"Our second-quarter results were driven by a rebound in our seasonal business, storm-related repairs and strength in our core categories," said CEO Frank Blake in a statement.

Spring and summer are the most important seasons for home-improvement retailers since people spend more on their lawn and garden projects during those months. Home-improvement retailers have slumped for more than three years after shoppers cut back on big-ticket renovation projects because of the moribund housing market and weak economy.

Home Depot, based in Atlanta, raised its full-year earnings guidance to $2.34 per share from $2.24. Analysts had expected $2.30. It still expects yearly revenue to rise 2.5 percent.

On Monday, Mooresville, N.C.-based Lowe's said its second-quarter net income was nearly flat as its revenue rose 1 percent to $14.54 billion.

[Associated Press]

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