Home Depot (HD) reported fourth-quarter results on Tuesday that exceeded analysts’ expectations, although the company’s outlook for the future fell short. The home-improvement retailer announced adjusted earnings per share (EPS) of $3.13 on revenue of $39.70 billion. Analysts surveyed by Visible Alpha had anticipated EPS of $3.03 and revenue of $39.12 billion.
For 2025, Home Depot forecasts total sales growth of approximately 2.8%, with a 1% increase in comparable store sales. This is lower than analysts’ projections of 3.27% total sales growth and a 1.88% rise in comparable sales. The company also expects its full-year adjusted EPS to decline by about 2% from $15.24 in 2024, contrasting with the analyst consensus of $15.63. Despite this, Home Depot raised its quarterly dividend by 2.2% to $2.30 per share.
Home Depot’s shares rose by about 2.5% shortly after the market opened on Tuesday. Over the past 12 months, the stock had increased by roughly 3%.
Comparable Store Sales Show Positive Turn
In the fourth quarter, Home Depot’s comparable store sales grew by 0.8% year-over-year, defying analyst predictions of a 1.48% decline. This marks a reversal from eight consecutive quarters of declines in comparable sales, with analysts expecting a slight positive turn in the first quarter of 2025.
Both Home Depot and its competitor Lowe’s (LOW) have cited inflation and a slowdown in home-improvement projects following the pandemic as factors impacting sales in recent quarters. Lowe’s is scheduled to release its fourth-quarter results on Wednesday.
— news from Investopedia