Home Depot stock: Share Price Jumps on Positive Earnings OutlookBy Alex Jusi Madlangbayan on Aug 15, 2012 in Business, Finance, Stock Market, United States, World •
Home Depot stock
Image Credit: NASDAQ Real Time Price
The Home Depot stock price jumped on Tuesday, August 14, 2012 after the company raised its earnings outlook for the fiscal year, according to several financial news reports. In early trading on Tuesday, Home Depot share price rose by 2.3 percent to $54.02.
Reports say that Home Depot was able to break its profit estimates with its cost controls and market share gains in several states that include California and Florida.
The positive outlook was shared by Home Depot‘s Chief Executive Officer Frank Blake during a conference call on Tuesday. After the Blake‘s announcement, Home Depot shares gained two percent.
Home Depot reportedly slashed its operating expenses by 2.7 percent to $4.46 billion in the quarter.
Several analysts predicts that Home Depot will surpass Lowe’s Cos Inc as the US economy continues to stabilize. With improved distribution, better pricing and customer service, Home Depot is reportedly eating up on Lowe’s market share. Another strategy that helped Home Depot is its localized marketing and merchandising.
According to the Commerce Department, the US retail sales gained 0.8 percent in July due to an increase in the demand for cars and electronics among others.
Home Depot expects that its fiscal-year sales will go up by 4.6 percent and forecast its earnings at $2.95 a share from previous outlook of $2.90.
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