Home Depot Reports Earnings of $1.2 Billion

Home improvement retailer Home Depot (HD) reported second quarter earnings of $1.2 billion, or 72 cents per diluted share, up from $1.1 billion, or 66 cents per diluted share, in the year-ago quarter.

While the profit beat expectations, sales came in short at $19.4 billion, but were 1.8% higher from the second quarter of fiscal 2009, the company said in a statement. Comparable store sales were up 1.7% in the second quarter of fiscal 2010.

"Our second quarter sales reflect the third consecutive quarter of positive same store sales. We delivered solid results as we continue to build momentum with our merchandising transformation, supply chain enhancements and customer service initiatives," CEO Frank Blake said

The company forecast that sales will rise 2.6% in fiscal 2010, with earnings per share from continuing operations to rise about 22.6% to $1.90 for the year. This includes the benefit of year-to-date share repurchases, but excludes the impact of future repurchases.

The report comes a day after rival Lowe's reported earnings that missed expectations.