People wear protective masks outside the Home Depot in the Flatiron District as the city continues Phase 4 of reopening following restrictions imposed to slow the spread of the coronavirus on August 8, 2020 in New York City.
Noam Galai | fake images
Home Depot’s fourth-quarter earnings beat investor expectations Tuesday as consumers continued to invest in their homes due to the pandemic and the strength of the housing market.
The shares fell more than 1% in premarket trading, after the company did not provide an outlook for the year.
Home Depot CFO Richard McPhail said the retailer is unsure how long the pandemic will last and how that may influence consumer spending. He said that if demand from the second half of last year continues, it would lead to slightly positive same-store sales growth and an operating margin of at least 14% this year.
Here’s what the company reported for the quarter ending January 31 compared to what Wall Street expected, according to a Refinitiv analyst survey:
- Earnings per share: $ 2.65. versus $ 2.62 expected
- Revenue: $ 32.26 billion vs. $ 30.73 billion expected
Home Depot’s net income increased to $ 2.86 billion, or $ 2.65 per share, up from $ 2.48 billion, or $ 2.28 per share, a year earlier. Analysts surveyed by Refinitiv had expected earnings per share of $ 2.62.
Net sales increased 25% to $ 32.26 billion from $ 25.78 billion a year ago, and exceeded estimates of $ 30.73 billion.
Its same-store sales in the United States increased by 25%. Its total same-store sales grew 24.5%, higher than the 19.2% growth that analysts expected, according to a StreetAccount survey. The growth is in line with what Home Depot reported during the second and third quarters, when it benefited from keeping the doors open as an essential retailer.
Home Depot also announced Tuesday that its board approved a 10% increase in its quarterly dividend to $ 1.65 per share.
This story is in progress and will be updated.
Read the full press release here.