Home Depot beats sales, profit estimates
CEO: We had a strong finish to the year
Home Depot reported better-than-expected fourth-quarter results, sending shares higher ahead of the opening bell.
The Atlanta-based home-improvement chain’s profit rose 5.8 percent year-over-year to $2.5 billion, or $2.28 a share in the three months through January. While revenue fell 2.7 percent from a year ago to $25.78 billion, it still edged out the $25.76 billion that analysts expected. Home Depot's 2019 results consisted of 52 weeks while its 2018 results consited of 53 weeks.
|HD||THE HOME DEPOT INC.||292.40||-0.43||-0.15%|
|LOW||LOWE'S COS. INC.||205.70||-0.82||-0.40%|
Comparable sales increased 5.2 percent overall, and were up 5.3 percent in the U.S. as customers' average spending per transaction increased by 4.1 percent to $68.29. Sales per square foot rose 2.8 percent to $425.70.
“Our fourth-quarter results reflect strength in our core business, solid execution around our holiday events and overall health of the consumer,” CEO Craig Menear said.
For the full year, the home-improvement chain earned $10.25 a share as revenue rose 1.9 percent to $110.23 billion. Comparable sales were up 3.5 percent overall and 3.8 percent in the U.S.
Home Depot raised its quarterly dividend by 10 percent to $1.50 a share, or $6 annually.
The company reiterated its full-year sales growth forecast of approximately 3.5 percent to 4 percent and earnings per share gains of about 2 percent to $10.45. Comparable sales are expected to grow 3.5 percent to 4 percent.
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Home Depot shares climbed 9.8 percent this year through Monday, outpacing the S&P 500's 0.2 percent decline.