People wear protective masks in front of Home Depot in the Flatiron district as the city continues phase 4 reopening following restrictions imposed to curb the spread of coronavirus on August 8, 2020 in New York City.
Noam Galai | Getty Images
Home Depot’s fourth-quarter earnings exceeded investors ’expectations on Tuesday as consumers continued to invest in their home due to the pandemic and the strength of the real estate market.
Shares have fallen more than 1% in pre-market trading, after the company provided no prospects for the year.
Home Depot chief financial officer Richard McPhail said the retailer is not sure how long the pandemic will last and how that could affect consumer spending. He said that if demand continues in the second half of last year, this year there will be a slightly positive growth in sales in the same store and an operating margin of at least 14%.
This is what the company reported during the quarter ended Jan. 31 compared to what Wall Street expected, according to a survey by Refinitiv analysts:
- Earnings per share: $ 2.65 versus $ 2.62 expected
- Revenue: $ 32.266 billion vs. $ 30.73 million projected
Home Depot’s net income rose to $ 2.866 billion, or $ 2.65 per share, from $ 2.48 million or $ 2.28 per share a year earlier. Analysts polled by Refinitiv expected a $ 2.62 earnings per share.
Net sales rose 25% to $ 32,266 million from $ 25.78 million a year ago, exceeding estimates of $ 30.73 million.
Its sales in the same American store increased by 25%. Its overall sales in the same store grew 24.5%, higher than the 19.2% growth analysts expected, according to a StreetAccount survey. Growth coincides 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 Tuesday that its board approved a 10% increase in the quarterly dividend to $ 1.65 per share.
This story is being developed and will be updated.
Read the full press release here.