: Home Depot tops Q2 estimates, backs guidance and unveils $15 billion share buyback program

Home Depot Inc.’s stock HD rose 0.9% in premarket trade Tuesday, after the home-improvement retailer beat estimates for its second-quarter earnings, back its guidance and announced a $15 billion share buyback program. The company posted net income of $4.659 billion, or $4.65 a share, for the quarter, down from $5.173 billion, or $5.05 a share, in the year-earlier period. Sales fell to $42.916 billion from $43.792 billion a year ago. The FactSet consensus was for EPS of $4.45 and sales of $42.193 billion. Same-store sales fell 2%, to beat the FactSet consensus for a 4.5% decline. “While there was strength in categories associated with smaller projects, we did see continued pressure in certain big-ticket, discretionary categories,” CEO Ted Decker said in a statement. “We remain very positive on the medium-to-long term outlook for home improvement and our ability to grow share in a large and fragmented market.” The company backed its full-year guidance for a decline in sales of 2%, a 5% decline in same-store sales and a decline in EPS of 7% to 13%. It also announced a $15 billion share buyback program. The stock has gained 4.5% in the year to date, while the S&P 500 SPX has gained 17%.

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