Page 24 - ARUBA TODAY

Wednesday 17 May 2017 BUSINESS
A24

Fertile ground for Home Depot as gardening season begins

ATLANTA (AP) — Home De- toward an all-time high be- secutive month in April, but April 30, revenue climbed opened or closed.
pot has found fertile ground fore the opening bell Tues- that was led by a big drop to $23.89 billion from $22.76 Home Depot Inc. earned
this first quarter as the gar- day. in construction of apart- billion. Analysts surveyed $2.01 billion, or $1.67 per
dening season begins and Economic data released ments, a volatile sector. by Zacks Investment Re- share, beating per-share
Americans, by the U.S. last week New home construction search predicted revenue projections on Wall Street
while pulling back on showed that Americans are has been a bright spot for of $23.74 billion. by 6 cents. A year earlier, it
spending elsewhere, ap- spending a lot of money at the U.S. economy. Sales at stores open at least earned $1.8 billion, or $1.44
pear more than ready to places like hardware stores With job growth expected a year jumped 5.5 percent per share.
plow money into projects even as they cut down on to continue, economists worldwide, and 6 percent The Atlanta company now
at home. budgets for clothing and believe homes sales will in the U.S. anticipates full-year earn-
The home improvement re- other items. jump in coming months. Industry analysts closely ings of $7.15 per share, up 2
tailer topped expectations The Commerce Depart- That economic data is monitor those sales as a key cents from prior guidance.
for profit and revenue and ment on Tuesday reported playing out at the cash reg- gauge of a retailer’s health Analysts polled by FactSet
it raised its profit outlook for that new home construc- isters of Home Depot. because it excludes the expect earnings of $7.20
the year, sending shares tion fell for the second con- For the three months ended volatility of stores recently per share. q

American housing starts fell 2.6 percent in April

By MARTIN CRUTSINGER tivity in the Northeast and
AP Economics Writer a 9.1 percent drop in the
WASHINGTON (AP) — Con- South. Those gains offset
struction of new homes a 41.1 percent rise in the
fell for a second straight Midwest and a 5.4 percent
month in April, pushing ac- increase in the West.
tivity to the lowest point in While the overall econo-
five months. my grew at a lackluster
Housing starts fell 2.6 per- 0.7 percent rate in the first
cent in April to a season- quarter, the housing sec-
ally adjusted annual rate tor stood out with a solid
of 1.17 million units, the 13.7 percent growth rate.
Commerce Department Economists are looking for
reported Tuesday. That housing to continue to sup-
followed a 6.6 percent port overall growth for the
decline in March and left rest of the year.
home building at its lowest The National Associated of
point since last November. Home Builders/Wells Fargo
The weakness was led by a builder index rose to 70
big drop in construction of this month, up two points
apartments, a volatile sec- from an April reading of
tor. 68. Reading above 50 in-
Nevertheless, housing con- dicate builders view sales
struction has been one A worker carries lumber at an apartment building under construction in Charlotte, N.C. On Tues- conditions as good. The
day, May 16, 2017, the Commerce Department reports on housing starts for April.
of the bright spots for the (AP Photo/Chuck Burton) index has been above 60
economy. Analysts expect since September and the
that the number of Ameri- reading hit 71 in March, the
cans seeking homes will decline out of the past upbeat lately and also single-family homes edged highest level since June
rebound in the coming three months. But some that we previously have up a slight 0.4 percent to 2005 during the height of
months, driven by strong analysts noted that previ- seen some temporary soft an annual rate of 835,000 the last housing boom.
employment gains and ous weakness in permit ap- patches in the permits data units. Construction of multi- Even with construction run-
low unemployment. plications has proven to be that did not derail the hous- family units dropped a ning ahead of last year’s
Applications for building temporary. ing recovery,” said Daniel sharp 9.2 percent to a rate pace, the supply of new
permits, an indicator of “We should keep in mind Silver, an economist with of 337,000 units. and existing homes across
future activity, fell 2.5 per- that several other hous- JPMorgan. The weakness was led by a much of the country re-
cent in April, the second ing indicators have been In April, construction of 37.3 percent plunge in ac- mains tight. q
Dick’s is feeling the retail burn, shares tumble

CORAOPOLIS, Pa. (AP) stores have been ham- Earnings, adjusted for non- Zacks had forecast adjust- lion in adjusted earnings
— Dick’s Sporting Goods mered during the quarter, recurring costs, were 54 ed earnings per share of $1. before interest, tax, depre-
joined the banged up first- feeling pressure from online cents per share, matching It expects full-year earn- ciation and amortization.
quarter retail roster, putting rivals. Dick’s said Tuesday Wall Street expectations, ings in the range of $3.65 to The company, based in
up sales numbers that sent that it revamped its website according to Zacks Invest- $3.75 per share. Coraopolis, Pennsylvania,
shares hurtling 12 percent earlier this year and sales ment Research. The quarterly earnings ar- has more than 690 Dick’s
lower early Tuesday. there have improved. Revenue rose 10 percent to rived four days after the stores, nearly 100 Golf Gal-
Sales rose 2.4 percent at Net income was $58.2 mil- $1.83 billion in the period, company, based just out- axy stores and about 30
established stores, a bad lion, or 52 cents per share, also meeting Street fore- side of Pittsburgh, said it Field & Stream stores.
sign for industry analysts in the three months ending casts. For the current quar- had made an accounting Shares of Dick’s Sporting
that had projected a 3.5 April 29, compared with ter ending in August, Dick’s mistake in its fourth-quarter Goods Inc., which are al-
percent rise, according to $56.9 million, or 50 cents per expects its per-share earn- and full-year reports for the ready down 10 percent so
FactSet. Macy’s, Nordstrom share, in the same quarter ings to range from $1.02 to period that ended Jan. 28. far this year, fell $5.98 $41.89
and other traditional retail a year ago. $1.07. Analysts surveyed by Dick’s overstated $23.4 mil- at the opening bell. q