Categories AlphaGraphs, U.S. Markets News

Home Depot earnings rise on strong home improvement market

Home improvement specialty retailer Home Depot reported an upbeat financial performance in the fourth quarter, driven primarily by higher customer traffic and a healthy home improvement market.

The Atlanta, Georgia-based company, which recently acquired The Company Store, an online and catalog giant, witnessed a 7.5% rise in its sales to $23.9 billion, beating analysts’ estimate of 6.5%.  The retailer reported a whopping 7.5% increase in its comparable sales. It also crushed earnings, reporting $1.52 per diluted share, a 5.6% increase from the same period in the prior year. Customer transactions during the quarter also rose 2%.

The retailer reported a whopping 7.5% increase in its comparable sales.

When compared to its rival Lowe, Home Depot has been enjoying more the recovery of the housing market. Homebuilding has grown to more than a one-year high in January. According to the Commerce Departments, housing starts rose 9.7%, highest level noted since October 2016. The retailer also benefited by the impact of hurricanes that hit the Southern US as well as from the reconstruction efforts from the other natural disasters that took place around the same time.

Home Depot is said to be one of the generous retailers as it aims to give back over 50% of its earnings to its shareholders. It has regularly been updating its dividend during its fourth-quarter earnings report, and as expected, the retailer revealed a significant 15.7% dividend boost this quarter to $1.03 per share.  The board has increased the dividend for the ninth consecutive year.

And Home Depot is making a serious start of spring sales as it plans to bring on board over 80,000 new workers nationwide.

The company also gave its guidance for 2018. Sales are expected to grow 6.5% and comp-store sales by approx 5%. EPS is anticipated to be $0.19.

 

Most Popular

KB Home (KBH): What did and did not work for the homebuilder in the third quarter

Shares of KB Home (NYSE: KBH) were up slightly on Friday. The stock has dropped 40% year-to-date and 35% over the past 12 months. The company delivered mixed results for

Infographic: A snapshot of Costco’s (COST) Q4 2022 earnings

Warehouse behemoth Costco Wholesale Corporation (NASDAQ: COST) has reported a 15% increase in fourth-quarter 2022 revenues, which translated into double-digit growth in net income. Fourth-quarter revenues increased sharply to $72.09 billion.

FDX Earnings: FedEx Q1 adjusted earnings drop; revenue up 5%

Cargo giant FedEx Corporation (NYSE: FDX) Thursday reported a decline in first-quarter adjusted earnings, despite an increase in revenues. The company also provided guidance for fiscal 2023. Net income, adjusted

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top