Home Depot crushes estimates, its sales jump 32.7% as customers rang up bigger purchases

KEY POINTS

• Shares of Home Depot have risen more than 20% this year, giving it a market value of $343 billion.
• The retailer has gotten a boost to sales over the last year during the coronavirus pandemic.
• The big question for Home Depot is whether it will be able to hold onto those gains even after the crisis subsides.

Home Depot on Tuesday crushed Wall Street's earnings estimates as consumers spent more money at the retailer this quarter.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

• Earnings per share: $3.86, vs. $3.08 expected
• Revenue: $37.5 billion, vs. $34.96 billion expected

The retailer reported fiscal first-quarter net income of $4.15 billion, or $3.86 per share, up from $2.25 billion, or $2.08 per share, a year earlier. Analysts surveyed by Refinitiv were expecting earnings per share of $3.08.

Net sales rose 32.7% to $37.5 billion, beating expectations of $34.96 billion. Global same-store sales surged 31% for the quarter.

This is the first quarter that the retailer is facing year-over-year comparisons to its business during lockdowns. A year ago,its first-quarter same-store sales grew 6.4%. Home Depot was classified as an essential business, accelerating sales for the company's do-it-yourself business as consumers tackled new projects while at home.