Will Home Depot Earnings Help Stabilize the Dow?

Lokibaho / Getty Images

Home Depot Inc. (NYSE: HD) reported fourth-quarter results before markets opened Tuesday. The home improvement superstore posted earnings per share (EPS) of $2.28 on revenues of $25.8 billion. Consensus estimates were calling for EPS of $2.10 and revenues of $25.76 billion. In the same quarter of last year, the company said it had EPS of $2.09 and revenues of $26.49 billion.

During the most recent quarter, comparable sales rose 5.2% globally and 5.3% in the United States. For the fiscal 2019 full year, comparable sales increased 3.5% globally and 3.8% domestically.

In addition, the board of directors has approved a 10% increase in its quarterly dividend to $1.50 per share, which equates to an annual dividend of $6.00 per share. The dividend is payable on March 26 to shareholders of record on the close of business on March 12.

Looking ahead to the fiscal 2020 full year, the company expects to see EPS of roughly $10.45 and total sales growth of 3.5% to 4.0%. Consensus estimates are calling for $10.54 in EPS and $114.77 billion in revenue for year.

Home Depot’s CEO and board chair, Craig Menear, commented:

We are now two years into our multi-year investment program and have more conviction than ever that our strategic initiatives are creating a value proposition that is unique to the marketplace and will extend our leadership position for years to come. Through the second year of our One Home Depot investment program, we have grown sales by over $9 billion dollars – a level of growth unmatched in our market. I am proud of the way our associates continue to focus on our customers, and I want to thank them for their hard work and dedication in the fourth quarter and throughout the year.

Home Depot stock traded up 2% early Tuesday at $244.85, in a 52-week range of $179.52 to $247.36. The consensus price target is $242.64. The Dow Jones industrials were trading slightly lower on last look.

Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE

Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.