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Home Depot reported first-quarter results on Tuesday. May 20Home Depot (HD) shares rose Tuesday morning after the home-improvement retailer's first-quarter sales came in better than expected and its CFO said the company plans to "generally maintain" its current price levels.
The company reported adjusted earnings per share (EPS) of $3.56 on net sales that increased 9% year-over-year to $39.86 billion. Analysts tracked by Visible Alpha had forecast adjusted EPS of $3.56 on sales of $39.24 billion.
Comparable store sales fell 0.3%, slightly worse than analysts' projection of a 0.24% decline. However, they increased by 0.2% among Home Depot's U.S. locations, while analysts had expected a very small drop.
"Our first quarter results were in line with our expectations as we saw continued customer engagement across smaller projects and in our spring events," CEO Ted Decker said. "We feel great about our store readiness and product assortment as spring continues to break across the country."
CFO Says Company Wants to 'Maintain Our Current Pricing Levels'
CFO Richard McPhail told CNBC that the retailer intends "to generally maintain our current pricing levels across our portfolio," adding that by this time next year, Home Depot will not rely on any one country for more than 10% of its imports, with at least half its products originating from the U.S.
Home Depot affirmed its its full-year outlook. Last quarter, the retailer topped estimates but its full-year projections of approximately 2.8% total sales growth, about 1% comparable sales growth, and a roughly 2% decline in adjusted EPS were worse than estimates.
Analysts said they were expecting relatively uneventful first-quarter reports from Home Depot and rival Lowe's (LOW), which releases results on Wednesday, and were more focused on the retailers' forecasts for the rest of the year.
Home Depot shares were up 1.7% soon after the opening bell Tuesday. They entered the day down about 2.5% since the start of the year.
UPDATE—This article has been updated with the latest share price information.
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