- Home Depot shares fell as much as 1% on Tuesday, even after first-quarter financial results trounced expectations.
- Earnings of $3.86 a share outpaced a FactSet consensus estimate of $3.02 a share
- Revenue of $37.5 billion was higher than the $34.82 billion projection from Wall Street.
Home Depot shares slid on Tuesday, even after the retailer's first-quarter earnings jumped 86% from a year ago on strong demand for supplies as customers worked on
Earnings came in at $3.86 a share, higher than the $3.02 a share estimated in a FactSet survey of analysts. A year ago, earnings were $2.08 a share.
Revenue for the quarter ended May 2 was $37.5 billion, above the anticipated $34.82 billion and 33% higher than $28.3 billion a year earlier.
Home Depot shares fell as much as 1%, but are still up roughly 20% year-to-date.
"Fiscal 2021 is off to a strong start as we continue to build on the momentum from our strategic investments and effectively manage the unprecedented demand for home improvement projects," Craig Menear, Home Depot's CEO, said in the earnings release.
Worldwide comparable sales rose 31% from a year and US same-store sales increased by 29.9%. Home Depot has been considered an essential retailer during the pandemic, allowing homeowners and builders access to supplies and equipment such as hot water heaters, propane, and plumbing fixtures.
Jefferies in a note said the company presented a "solid quarter" with strong expansion in operating margins. Jefferies has a buy rating on Home Depot with a price target of $374.