Home Depot Inc. (NYSE: HD) released its fiscal fourth-quarter financial results before the markets open on Tuesday. The company said that it had $1.69 in earnings per share (EPS) on $23.88 billion in revenue, compared with consensus estimates from Thomson Reuters that called for $1.61 in EPS on revenue of $23.66 billion. The same period of last year reportedly had EPS of $1.44 and $22.21 billion in revenue.
According to the firm, it expected the impact of the Tax Cuts and Jobs Act of 2017 to result in an additional net tax expense of about $150 million. The provisional amount recorded in the fourth quarter was $127 million. This charge, along with the one-time bonus payment to hourly associates that was also announced on January 25, 2018, negatively impacted fourth-quarter and fiscal 2017 EPS by roughly $0.17.
During the quarter, comparable store sales were positive 7.5%, and comp sales for U.S. stores were positive 7.2%.
In terms of guidance for the next fiscal full year, the company expects to see sales growth of roughly 6.5%, with comparable store sales growth of about 5.0% and EPS of $9.31. The consensus estimates call for $9.22 in EPS on $107.12 billion in revenue for the year.
Home Depot’s cash and cash equivalents totaled $3.60 billion at the end of the quarter, up from $2.54 billion in the same period of last year.
Craig Menear, board chair, chief executive and president, commented:
Our ongoing commitment to enhance the interconnected retail experience for our customers, provide localized and innovative product, and deliver best in class productivity resulted in record sales and net earnings for 2017. I would like to thank our associates for their solid execution and exceptional work in service to our customers.
Shares of Home Depot closed most recently at $186.97, with a consensus analyst price target of $211.13 and a 52-week range of $143.25 to $207.61. Following the announcement, the stock was up 2.8% at $192.20 in early trading indications Tuesday.
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