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Home Depot Inc. (NYSE: HD) reported its financial results for the fiscal fourth quarter on Tuesday that topped analysts’ estimates for profit and sales. The company also raised its dividend by 10%.

Home Depot shares were reported about 2% down in premarket trading on Tuesday. The stock now has a per-share price of £192.76 versus £108.06 per share in March 2020. Learn more about why do prices rise and fall in the stock market.

Home Depot’s Q4 financial results versus analysts’ estimates

Home Depot said that its net income in the quarter that concluded on 31st January came in at £2.03 billion, that translates to £1.88 per share. In the same quarter last year, its net income was capped at a lower £1.76 billion, or £1.62 per share.

The home improvement retailer said its net sales jumped 25.1% in Q4 to £22.91 billion. According to FactSet, experts had forecast the company to post £21.75 billion of net sales in the recent quarter. Their estimate for per-share earnings stood at a lower £1.87.

In separate news from the U.S., Wells Fargo said it will sell its asset management business for £1.49 billion.

Home Depot reported a 24.5% increase in its comparable-store sales in the fourth quarter versus a narrower 19.2% jump expected. In the United States, its same-store sales in Q4 climbed by 25% to top FactSet Consensus of 20.9%.

In comparison, the retailer had registered £24.19 billion of revenue in the prior quarter (Q3).

Home Depot declares £1.17 per share of quarterly dividend

The Atlanta-based company refrained from giving guidance for the full year on Tuesday due to the uncertainties attributed to the ongoing Coronavirus pandemic. Home Depot declared £1.17 per share of quarterly dividend – an increase from £1.07 per share last year.

CFO Richard McPhail commented on the earnings report on Tuesday and said:

“As we look ahead of fiscal 2021, while we are not able to predict how consumer spending will evolve, if the demand environment during the back half of fiscal 2020 were to persist through fiscal 2021, it would imply flat to slightly positive comparable sales growth and operating margin of at least 14%.”

Home Depot performed fairly upbeat in the stock market last year with an annual gain of more than 15%. At the time of writing, it is valued at £210.92 billion and has a price to earnings ratio of 23.84.

The post Home Depot beats Wall Street estimates in the fiscal fourth quarter appeared first on Invezz.



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