Home Depot posted better-than-expected sales and profits Tuesday.
Nicholas Kamm/AFP/Getty Images
Home Depot stock rose Tuesday after the home-improvement retailer reported stronger-than-expected quarterly profits and announced a 15% increase in its dividend.
Home Depot (ticker: HD) reported fourth-quarter net earnings of $3.4 billion on sales of $35.7 billion, delivering earnings per share (EPS) of $3.21. Profits climbed from $2.9 billion in the same period a year ago, while net sales surged 10.7% year-over-year and same-store sales—a key industry metric—jumped 8.1%.
The results beat Wall Street’s expectations. Analysts were expecting same-store sales growth of 5% and EPS of $3.18, according to those surveyed by FactSet.
Shares in the company rose 0.3% higher in the U.S. premarket, compared to a wider slump in stocks Tuesday amid heightened geopolitical tensions over the Russian-Ukraine conflict.
In its outlook, Home Depot said it expects sales growth to be slightly positive in the year ahead, largely in line with analysts’ guidance estimates, with operating margins flat compared with fiscal year 2021.
The group also announced a 15% increase in its quarterly dividend to $1.90 per share.
