People are wearing protective face masks outside Home Depot in the Flatiron District as the city continues Phase 4 of reopening after the restrictions were imposed to delay the spread of coronavirus on August 8, 2020 in New York City.
Noam Galai | Getty Images
Home Depot’s earnings in the fourth quarter on Tuesday exceeded investor expectations as consumers continued to invest in their homes due to their pandemic and the strength of the real estate market.
Shares are down more than 1% in trading before the market, after the company did not give a forecast for the year.
Richard McPhail, chief financial officer of Home Depot, said the retailer was not sure how long the pandemic would last and how it could affect consumer spending. He said if demand continued in the second half of last year, it would lead to a slight positive growth in the same stores 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 a survey of analysts by Refinitiv:
- Earnings per share: $ 2.65 versus $ 2.62 expected
- Revenue: $ 32.26 billion against $ 30.73 billion expected
Home Depot’s net income a year earlier had risen to $ 2.86 billion, or $ 2.65 per share, from $ 2.48 billion, or $ 2.28 per share. Analysts surveyed by Refinitiv expected earnings of $ 2.62 per share.
Net sales increased 25% to $ 32.26 billion from $ 25.78 billion a year ago, and the estimate of $ 30.73 billion higher.
US sales in the same store increased by 25%. Its total sales in the same store grew by 24.5%, higher than the 19.2% growth analysts had 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 dealer.
Home Depot also announced on Tuesday that its board has approved a 10% increase in its quarterly dividend to $ 1.65 per share.
This story is evolving and will be updated.
Read the full press release here.