Home Depot Sees 2010 EPS of $1.97, Intends to Repurchase $2.5B Shares in 2011

The Home Depot HD will today outline progress on its key strategic priorities and discuss its long-term financial targets at its 2010 Investor and Analyst Conference. In addition, the Company lifted its fiscal year 2010 sales and earnings per share from continuing operations guidance and provided fiscal year 2011 financial targets.

Updated Fiscal Year 2010 Sales and Earnings Per Share from Continuing Operations Guidance

Based on its year-to-date performance and expectations for the remainder of the fiscal year, the Company updated its fiscal year 2010 guidance and now expects sales to be up approximately 2.3 percent for the year.  The Company expects diluted earnings per share from continuing operations as reported to increase by approximately 27 percent to $1.97 for the year.  This earnings per share guidance includes the benefit of the Company's year-to-date repurchases through the third quarter of fiscal 2010, but excludes the impact of future share repurchases.

Fiscal Year 2011 Financial Outlook (based on GAAP)

The Company set forth the following financial targets for fiscal year 2011:  

• Sales growth: approximately 2.0 to 2.5 percent
• Comparable store sales growth: low single digit
• New store openings: 10
• Gross margin expansion: moderate
• Expense leverage: modest
• Operating margin expansion: approximately 30 to 40 bps
• Tax rate: approximately 36.9 percent
• Earnings per share from continuing operations growth, before share repurchases: approximately 7 to 9 percent
• Earnings per share from continuing operations growth, after share repurchases: approximately 11 to 13 percent
• Capital expenditures: approximately $1.3 billion
• Depreciation and amortization expense: approximately $1.7 billion
• Cash flow from the business: approximately $5.4 billion
• Share repurchases: intend to use excess cash to repurchase shares; targeting $2.5 billion