Brian Nagel, Oppenheimer analyst, breaks down the numbers at Home Depot.
By Roland Jones, NBC News
Home Depot impressed Wall Street with its latest earnings report Tuesday, driving its stock price up 3 percent to just above $54 in morning trading.
The world?s largest home improvement retailer reported net earnings of $1.5 billion for the second quarter of fiscal 2012, up from net earnings of $1.4 billion in the same period of fiscal 2011 -- an increase of 7.1 percent. Sales for the second quarter were $20.6 billion, a 1.7 percent increase from the second quarter of fiscal 2011.
Home Depot hiked its fiscal-year earnings outlook too, as tight cost controls helped the company to offset sales weakness and beat Wall Street's profit estimates in the quarter.
Brian Nagel, an analyst at Oppenheimer, appeared on CNBC to break down the company?s report, calling Home Depot ?better run today than it?s ever been run.?
A key feature of the Home Depot?s report was the management's ability to keep expenses down, Nagel said.
?It?s very encouraging,? he said. ?As sales continue to gradually improve, you?re seeing them control their costs very very well.?
?I think the market will look at this report and say this is a really solid report,? Nagel said.
There was a lot of concern on Wall Street that there would be a slowdown in sales because of the weather, he added.
?Sales did slow down a bit from Q1 to Q2, but not dramatically, and that?s going to comfort investors as they look at these results,? Nagel said.
Nagel noted that, given the mild winter, demand had been pulled forward. Home owners were beginning remodeling projects earlier than usual, he said.
Reuters contributed to this report.
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