US Existing-Home Sales Decline as Rates Keep Buyers Sidelined
Sales of previously-owned homes in the US fell in March from a one-year high, underscoring the lingering impact of high mortgage rates and elevated prices.
Nov 13, 2018
Home Depot raises forecast, easing concern on home improvement market
, Bloomberg News
Home Depot Inc. (HD.N) eased doubts about a slowing home-improvement market, raising its annual sales forecast as quarterly earnings and revenue beat analysts’ estimates.
Same-store sales rose 4.8 per cent in the third quarter, surpassing analysts’ projections. Revenue of $26.3 billion topped estimates.Key Insights
-Even with some housing indicators softening, home prices have continued to rise, which Home Depot sees as the biggest incentive for people to spend on their properties.
-The world’s largest home-improvement chain showed off its ability to manage an income statement as earnings of us$2.51 a share topped estimates for the 18th straight quarter, dating back to the beginning of 2014.
-The company signaled optimism for the rest of the year by raising its full-year sales growth forecast to 7.2 per cent, up from its previous outlook for a 7 per cent increase. Home Depot saw gross margin rise to 34.8 per cent -- the highest point in more than four years. It was still lower than analysts’ forecast of 35 per cent, however, with higher transportation and raw-material costs likely eating into profitability.
Market Reaction
Home Depot rose as much as 3.7 per cent to us$186.12 Tuesday before U.S. markets opened.
