Home Depot reported second-quarter earnings $5.05 a share, topping analysts' estimates, and reaffirmed its 2022 guidance.
But Home Depot (ticker: HD) shares fell 0.4% in premarket trading to $313.43 after customer transactions declined 3% in the period. Coming into Tuesday, the stock has fallen 24.2% this year.
Sales in the quarter were $43.8 billion, up 6.5% from a year earlier.
Analysts surveyed by FactSet had expected the largest home-improvement retailer to report quarterly earnings of $4.95 a share on sales of $43.4 billion.
A year earlier, Home Depot earned $4.53 a share on sales of $41.1 billion.
Same-store sales rose 5.8%, ahead of estimates of 4.9%. U.S. same-store sales jumped 5.4% despite a slowdown in the housing market .
"In the second quarter, we delivered the highest quarterly sales and earnings in our company's history," said Ted Decker, chief executive and president, in a press release. "Our performance reflects continued strength in demand for home-improvement projects."
Total customer transactions, however, fell to 467.4 million in the second quarter from 481.7 million a year earlier. Home Depot said its average ticket rose 9.1% to $90.02.
The company reaffirmed it expects total sales growth and comparable-sales growth of about 3% for the fiscal year. It expects per-share earnings growth in the mid-single digits.
Wells Fargo analyst Zachary Fadem said Tuesday that Home Depot "delivered very solid results across the board, illustrating the resilience of the Pro and suggesting underlying housing metrics are (at least currently) likely less bad than feared. " He rates the stock at Overweight with a price target of $350.
Citi analyst Steven Zaccone last week retained his Buy rating and $348 price target on Home Depot, saying that while it faces the same issues as rival Lowe's (LOW) — higher inflation and a decline in home prices, among other things — he believes Home Depot can offer better-than-expected earnings and comparable sales, saying its professional business is "driving the near-term strength."
Lowe's was down 0.4% in premarket trading.