People wear protective masks outside the Home Depot in the Flatiron district as the city continues to Phase 4 reopen after 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 investor expectations on Tuesday, with consumers continuing to invest in their homes due to the pandemic and the strength of the housing market.
The shares fell more than 1% in the pre-market after the company failed to provide a forecast for the year.
Home Depot chief financial officer Richard McPhail said the retailer is unsure how long the pandemic will last and how it can influence consumer spending. He said that if demand for the second half of last year continues, it will lead to slightly positive growth in same-store sales and an operating margin of at least 14% this year.
Here is what the company reported for the quarter ended January 31, compared to what Wall Street expected, based on a survey of analysts at Refinitiv:
- Earnings per share: $ 2.65. vs. $ 2.62 expected
- Revenue: $ 32.26 billion versus expected $ 30.73 billion
Home Depot’s net income rose to $ 2.86 billion, or $ 2.65 per share, from $ 2.48 billion, or $ 2.28 per share, a year earlier. Analysts polled 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 exceeding estimates of $ 30.73 billion.
Its same-store sales in the U.S. increased by 25%. Its overall same-store sales grew 24.5%, up from the 19.2% growth that 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 its doors open as an essential retailer.
Home Depot also announced on Tuesday that its board approved a 10% increase in its quarterly dividends to $ 1.65 per share.
This story is developing and will be updated.
Read the full press release here.