People wear protective masks in front of the Home Depot in Flatiron District, while the city continues phase 4 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 earnings in the fourth quarter exceeded investors’ expectations on Tuesday as consumers continued to invest in their homes due to the pandemic and the strength of the real estate market.
Shares fell more than 1% in premarket trading, after the company did not offer a prospect for that year.
Home Depot chief financial officer Richard McPhail said the retailer was unsure how long the pandemic would last and how it could affect consumer spending. He said that if demand in the second half of last year continues, it will lead to a slightly positive increase in sales in the same store 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 poll conducted by analysts by Refinitiv:
- Earnings per share: 2.65 USD compared to 2.62 USD expected
- Revenue: $ 32.26 billion compared to $ 30.73 billion expected
Home Depot’s net income rose to $ 2.86 billion, or $ 2.65 per share, up from $ 2.48 billion or $ 2.28 a share a year earlier. Analysts surveyed by Refinitiv were expecting earnings per share of $ 2.62.
Net sales rose 25% to $ 32.26 billion from $ 25.78 billion a year ago and exceed estimates of $ 30.73 billion.
Its sales in the same store in the USA increased by 25%. Overall, its sales in the same store rose 24.5%, higher than the 19.2% increase analysts expected, according to a StreetAccount survey. The increase is in line with what Home Depot reported in the second and third quarters, when it benefited from keeping the doors open as a key retailer.
Home Depot also announced Tuesday that its board approved a 10% increase in the quarterly dividend to $ 1.65 per share.
This story is developing and will be updated.
Read the full press release here.