Home Depot tops estimates as sales surge 25%, but shares fall on worries pandemic gains won’t last
People wear protective face masks outside Home Depot in the Flatiron district as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on August 8, 2020 in New York City.
Noam Galai | Getty Images
Home Depot‘s fourth-quarter earnings surged past investors’ expectations on Tuesday, as consumers continued to invest in their homes due to the pandemic and strength of the real estate market.
Shares are down nearly 2% in premarket trading, after the company did not provide an outlook.
Here’s how the company did for the quarter ended Jan. 31:
- Earnings per share: $2.65. vs. $2.62, expected, based on Refinitiv’s consensus estimates
- Revenue: $32.26 billion vs. $30.73 billion, expected, according to Refinitiv
Home Depot’s net income rose to $2.86 billion, or $2.65 per share, up from $2.48 billion, or $2.28 per share, a year earlier. Analysts surveyed by Refinitiv expected earnings per share of $2.62.
Net sales rose 25% to $32.26 billion, from $25.78 billion, reported a year ago. The retailer exceeded analysts’ expectations of $30.73 billion.
Its U.S. same-store sales jumped by 25%. Its overall same-store sales grew by 24.5%, higher than the 19.2% growth that analysts expected, according to a StreetAccount survey. The growth is in line with what Home Depot reported during the second and third quarter, when it benefited from keeping doors open as an essential retailer.
Home Depot also announced Tuesday that its board of directors has approved a 10% increase in its quarterly dividend to $1.65 per share.
This story is developing and will be updated.
