Home Depot’s latest quarterly earnings show just how much of a joke this crisis has been for the company. Home Depot has just cruised right through the housing collapse, stealing market share and still making money.
Sales and earnings were down during the latest quarter. Given their industry, if Home Depot can make money during the worst housing crisis ever, then they’ve proven themselves remarkably well managed.
Home Depot: The Company updated its fiscal 2009 EPS guidance and now expects diluted earnings per share from continuing operations of approximately $1.50, up 9.5 per cent from fiscal 2008. On an adjusted basis, the Company now expects diluted earnings per share from continuing operations of approximately $1.55 for the year, a decline from fiscal 2008 of approximately 13 per cent.
Below is a table of adjusted earnings from Value Line. The latest October period just came in at $0.41. Just looking at the numbers alone, you’d never imagine that the worst housing crisis ever had taken place. Even if one looks at unadjusted data, inclusive of one-offs, Home Depot only lost money during a single quarter (ending February 2009), and it was only a modest amount. You can find their latest earnings release here.