Categories Earnings, Retail

Home Depot’s (HD) Q4 results beat market estimates

The Home Depot Inc. (NYSE: HD) reported better-than-expected revenue and earnings for the fourth quarter of 2019. Analysts had projected earnings of $2.10 per share on revenue of $25.78 billion. Shares were up 2.5% in premarket hours on Tuesday.  

Total sales were $25.8 billion compared to $26.5 billion reported a year ago. Last year’s topline results benefited from an extra week of operations, which contributed around $1.7 billion in sales.

Home Depot beats Q4 2019 revenue and earnings estimates

Net earnings were $2.5 billion, or $2.28 per share, compared to $2.3 billion, or $2.09 per share, in the prior-year quarter.

Comparable sales increased 5.2% and comp sales in the US increased 5.3%. Customer transactions declined 6.4% during the quarter while average ticket and sales per retail square foot increased 4.1% and 2.8% respectively.

The company stated that its strategic initiatives are yielding value and that sales have grown by over $9 billion through the second year of the One Home Depot investment program.

Also read: GW Pharmaceuticals Q4 2019 Earnings Preview

Earlier this month, the retailer said it is planning to hire 80,000 associates for spring, which is its busiest season of the year. Most of the part-time workers will be staffed in the garden center, with the aim of helping customers with their spring projects.   

In December, Home Depot had provided preliminary 2020 guidance which was below analysts’ expectations and this caused the stock to drop at the time.

For fiscal year 2020, the company expects total sales growth of approx. 3.5-4%. Comparable sales is expected to grow approx. 3.5-4%. Diluted EPS is expected to grow approx. 2% to $10.45. Home Depot plans to open six new stores during the year.

The board of directors approved a 10% increase in the quarterly dividend to $1.50 per share, which amounts to an annual dividend of $6.00 per share. The dividend is payable on March 26, 2020 to shareholders of record on March 12, 2020.

At the end of the fourth quarter, Home Depot operated a total of 2,291 retail stores in all 50 states, the District of Columbia, Puerto Rico, the US Virgin Islands, Guam, 10 Canadian provinces and Mexico. 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Virgin Galactic stock tanks on delayed test flight

Virgin Galactic (NYSE: SPCE) reported fourth-quarter 2020 financial results after the regular market hours on Thursday. The space tourism company reported zero revenue in the fourth quarter, compared to $529,000

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