Home Depot (HD) reported mixed fourth-quarter earnings and weak guidance early Tuesday. Even with a large dividend and buy-back program, the Home Depot share fell.
Home Depot Earnings
Estimates: Wall Street Expected Home Deposits Per Share to Jump 28% to 2.16 Per Share. Analysts saw revenues for home improvement trading climb 11% to $ 26.57 billion. Consensus Metrix predicts a 4.5% same store sales gain.
Results: Home Depot revenue came in at $ 2.09 per share, or $ 2.25 excluding a 16 percent fee for the Interline unit. Revenue rose nearly 11% to $ 26.49 billion. Sames store sales grew 3.2%, with US comps up 3.7%.
Outlook: Home Depot looks comps up 5% in the current fiscal year, with EPS up 3% to $ 10.03. Analysts had expected Home Depot earnings of $ 10.26 per share.
The Dow Jones retail giant also had a quarterly dividend increase of 32% to $ 1.36 per share and a $ 15 billion share purchase program.
Home Depot Stock
Home Depot stock pulls 2.5% before the stock market opened today. On Monday, the Home Depot stock fell 1.25% to 189.98, just above the 200-day line. The Home Depot share was on its way through a long cupbase with a 215.53 place of purchase.
In November, Home Depot showed investors had to deal with tough fourth-quarter comparisons – albeit due to damage from hurricanes in 2017.  At that time, the management said that in the fourth quarter, the company knocked out about $ 380 million of hurricane-related issues. sales from the period 2017, when people bought several supplies to rebuild or repair damaged properties.
In the third quarter, sales to Home Depot's Pro division, which serves professional contractors and installers, outperform the DIY sales, the company said on its latest earnings call in November.
Management said the trend was "a testament to the overall strength of domestic demand." But as always, analysts will use the company's fourth-quarter revenue to measure the overall housing market.
"Housing-related calculations are moderating," said CFO Carol Tome during the conversation. House prices continue to appreciate, housing stock is aging, households are formed and housing continues to reverse. "
Online sales jumped 28% in the third quarter. The company also tries to build up a fast delivery network.
Rival Lowe's (LOW) fell 1.4% to 103.52. Lowe's stock is also in a long cup base, with a 117.80 buying point. Lowe's earnings are due on Wednesday.
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