People are wearing protective face masks outside of Home Depot in the Flatiron district as the city proceeds to phase 4 of the reopening following restrictions imposed to slow the spread of the coronavirus on August 8, 2020 in New York City.
Noam Galai | Getty Images
Home Depot’s fourth-quarter earnings exceeded investors’ expectations on Tuesday as consumers continued to invest in their homes amid the pandemic and the strength of the real estate market.
Shares fell more than 1% in premarket trading after the company failed to provide outlook for the year.
Richard McPhail, Home Depot’s chief financial officer, said the retailer isn’t sure how long the pandemic will last and how that might affect 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 ended Jan. 31 compared to what Wall Street expected, based on an analyst survey by Refinitiv:
- Earnings per share: Expected $ 2.65 vs. $ 2.62
- Revenue: $ 32.26 billion vs. $ 30.73 billion forecast
Home Depot’s net income rose to $ 2.86 billion, or $ 2.65 a share, from $ 2.48 billion, or $ 2.28 a share, a year earlier. Analysts polled by Refinitiv expected earnings per share of $ 2.62.
Net sales were up 25% to $ 32.26 billion from $ 25.78 billion a year ago, and exceeded estimates of $ 30.73 billion.
Sales in the same store in the US were up 25%. Total sales at the same store grew 24.5%, ahead of the 19.2% growth 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 doors open as an essential retailer.
Home Depot also announced on Tuesday that its board of directors has approved a 10% increase in its quarterly dividend to $ 1.65 per share.
This story is under development and will be updated.
Read the full press release here.