The Home Depot, Inc. (HD) Beats Expectations; Now What?

Lowe’s reported first-quarter profit missed analysts’ estimates as its same-store sales fell about 10% in March. But the April numbers were up by 10%, so performance is improving. In short, the company’s net income for the quarter was up by 2.5% to $540 million, or $0.49 a share – analysts projected $0.51. Finally revenue fell 0.5% to $13.1 billion – an indicator of slower growth going forward if not stormy weather.

Lumber Liquidators Holdings Inc (NYSE:LL) raises 2013 outlook

Lumber Liquidators Holdings Inc (NYSE:LL) put up numbers toward the end of April for the first quarter that ended on Mar. 30. The company’s line is a bit different than The Home Depot, Inc. (NYSE:HD) and Lowe’s as Lumber Liquidators is the largest specialty retailer of hardwood flooring in North America.

Net sales increased $42.4 million, or 22.5%, to $230.4 million in the first quarter of 2013 from $188.0 million in the first quarter of 2012. Net store sales increased 15.2% for the quarter, partly owing to the company opening five new stores during the first quarter of 2013. This differentiates Lumber Liquidators Holdings Inc (NYSE:LL) from Home Depot since that outfit has not been opening new stores while opting for a push into the Internet.

In sum, the hardwood flooring king’s net income increased by 2.5% to $15.8 million, or $0.57 per diluted share, in the first quarter of 2013 – from $8.2 million in the first quarter of 2012. Based on these results, the Company expects net sales for 2013 in a range of $914 to $942 million as a total of 25-30 new stores will open.

The bottom line

Both The Home Depot, Inc. (NYSE:HD) and Lumber Liquidators should be good buys for the rest of 2013 as the housing market recovery will pick up. As for Lowe’s, to borrow a phrase, you don’t need a weather man to know which way the wind blows.

The article Home Depot Beats Expectations; Now What? originally appeared on Fool.com and is written by Kyle Colona.

Kyle Colona is a freelance writer from the New York area with a broad background in legal and regulatory affairs in the finance sector. His extensive body of work is accessible on the web. Mr. Colona is not a financial advisor and he does not hold a position in the stocks mentioned herein. This article is for informational purposes only and should not be construed as financial advice.

The Motley Fool recommends Home Depot, Lowe’s, and Lumber Liquidators. The Motley Fool owns shares of Lumber Liquidators. Kyle is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.