Home Depot Inc. (HD) - Get Report posted stronger-than-expected fourth quarter earnings Tuesday, and reiterated its full-year sales forecast, as same-store sales topped forecasts for the holiday period.
Home Depot said earnings for the three months ending on February 3 were pegged at $2.28 per share, a modest 1.33% gain from last year but fully 18 cents ahead of the Street consensus forecast.
Group sales, Home Depot said, slipped 2.6% to $25.8 billion, just ahead of analysts' forecasts of a $25.76 billion tally,, but the company noted that an extra week in the 2018 fiscal year added $1.7 billion to the comparable total.
Home Depot said same-store sales rose 5.2% from last year, well ahead of the consensus estimate of 4.7, and reiterated its full-year 2020 guidance that sees comparable sales rising between 3.5% and 4.%. Full year earnings, Home Depot said, are expected to rise 2% to $10.45 per share.
"We had a strong finish to the year as our fourth quarter results reflect strength in our core business, solid execution around our holiday events and the overall health of the consumer," said CEO Craig Menear. "We are now two years into our multi-year investment program and have more conviction than ever that our strategic initiatives are creating a value proposition that is unique to the marketplace and will extend our leadership position for years to come."
"Through the second year of our One Home Depot investment program, we have grown sales by over $9 billion dollars – a level of growth unmatched in our market. I am proud of the way our associates continue to focus on our customers, and I want to thank them for their hard work and dedication in the fourth quarter and throughout the year," he added.
Home Depot shares were marked 2.5% higher in early Tuesday trading following the earnings release to change hands at $245.29 each, a move that would extend the stock's six-month gain to around 13.5%.