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Earnings Analysis: 
Home Depot Q3 Earnings Rise
Author: George Shopov
123jump.com



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Home Depot, the world's No.1 home improvement chain, reported a 22% increase in its quarterly earnings, aided by more attention to customer service and technology upgrades.

 
The Home Depot, Inc. (HD: chart) announced before the bell Tuesday that its quarterly earnings jumped 22%, boosted by more attention to customer service and technology upgrades. The world’s largest home improvement chain posted a profit of $1.15 billion, or 50 cents a share, for its fiscal 2004 third quarter, compared with a profit of $940 million, or 40 cents a share, in the same quarter a year ago. The Atlanta, Georgia-based company topped analysts’ expectations for earnings of 46 cents a share. For the quarter ended November 2, revenue surged 15% to $16.6 billion from $14.48 billion, in the prior year. Home Depot said its same-store sales increased 8%. For the first nine months, profit was up to $3.35 billion, or $1.46 a share, from $2.98 billion, or $1.26 a share, a year ago.

The company said it expects its full-year earnings to increase 15% to 17%.

Company shares slipped 1.47% on Tuesday to $34.95. The stock gained 15 cents to $35.10 in after-hours trading.

Staples, Inc. (SPLS: chart) of Framingham, Massachusetts, reported Tuesday a third-quarter profit of $165.8 million, or 33 cents per share, up from $128.0 million, or 27 cents per share, in the year-ago period, and a penny above Wall Street projections. The office supply retailer said results were due to a strong back-to-school season and sales of furniture, business machines and services.

Staples shares closed Tuesday up 20 cents, or 0.80%, at $25.20. The stock dropped 20 cents to $25.00 in after-market trade.

BJ's Wholesale Club, Inc. (BJ: chart) said Tuesday its third-quarter earnings slid 13% to $20.4 million, or 29 cents per share, from $23.4 million, or 33 cents per share, in the same period last year, on price cutting. Analysts had called for profit of 27 cents a share. The Natick, Massachusetts-based warehouse club operator said net sales leapt 18.2% to $1.6 billion.

The stock dived 6.27% to close Tuesday at $23.90. Company shares edged up 4 cents to $23.94 in after-hours trading.

Boosted by improved sales, Saks Incorporated (SKS: chart), the Birmingham, Alabama-based department store operator, posted Tuesday third-quarter income of $12.35 million, or 9 cents per share, in contrast to a profit of $1.92 million, or a penny per share, generated last year. Excluding a one-time gain, profit was 5 cents a share, 2 cents ahead of analysts’ forecasts. Sales rose to $1.47 billion from $1.41 billion, a year ago.

Saks shares dipped 21 cents on Tuesday to $14.79. The stock was up 0.17% to $14.82 in after-market trade.

Analog Devices, Inc. (ADI: chart) of Norwood, Massachusetts, said after the bell Tuesday its quarterly profit more than doubled, boosted by strong orders. The maker of analog and digital integrated circuits reported fourth-quarter net earnings of $88 million, or 23 cents a share, compared with $34.8 million, or 9 cents a share, in the 2002 equivalent. Revenue soared 22% to $557.5 million from $455.7 million last year.

The stock slipped 35 cents to $44.89 at market close Tuesday. Company shares rose 2.07% to $45.82 in after-hours trading.

Network Appliance, Inc. (NTAP: chart) reported after market close Tuesday net income of $48.4 million, or 13 cents per share, for its fiscal second quarter ended October 31. For the 2003 comparable period, the data storage equipment maker posted net earnings of $15.8 million, or 5 cents per share. The Sunnyvale, California-based company said a large tax benefit and strong sales boosted the results. Revenue surged 28% to $275.6 million from $215.2 million, a year earlier.

Company shares fell 3.66% on Tuesday to $23.43. The stock plunged 6.57% to $21.89 in after-market trade.

Zale Corporation (ZLC: chart) of Irving, Texas, said Tuesday its fiscal 2004 first-quarter net loss widened to $9.2 million, or 34 cents a share, from a year-ago loss of $6.7 million, or 20 cents a share. Analysts had forecast a loss of 35 cents a share. The largest U.S. specialty jeweler cited weak sales and a change in accounting methods as main factors for the loss increase.

Zale shares closed Tuesday at $53.00, down $1.60, or 2.93%.

CTI Molecular Imaging, Inc. (CTMI: chart) posted Tuesday a 32% drop in its quarterly earnings, weighed down by increasing expenses and an acquisition charge. The Knoxville, Tennessee-based provider of medical scanning equipment said it earned $5.2 million, or 11 cents a share, in its fiscal fourth quarter, compared with $7.6 million, or 16 cents a share, a year earlier. Net revenue increased 39% to $120.6 million.

Company shares shed 36 cents on Tuesday to $15.57. The stock was down 3.98% to $14.95 in after-hours trading.

Dick's Sporting Goods, Inc. (DKS: chart), the Pittsburgh, Pennsylvania-based sporting goods retailer, said Tuesday its third-quarter profit rocketed up 71% to $4.7 million, or 18 cents a share, boosted by higher same-store sales. Results beat analysts’ projections for earnings of 16 cents a share on average. For the same period last year, the company earned $2.8 million, or 14 cents per share. Same-store sales were up 2.5%. Total sales jumped 16% to $338.2 million.

The stock rose 6.15% to close Tuesday at $46.96. Company shares added 19 cents to $47.15 in after-market trade.

Air France (AF: chart) reported Tuesday a second-quarter net profit of €48 million ($57 million) down from €57 million, in the prior-year quarter. Results of the Roissy, France-based carrier were below analysts' expectations for profit of €71 million to €76 million.
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Market data: BATS Exchange. Inc.

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