Home Depot (HD) reported mixed results for the fourth quarter and weak forecasts early Tuesday. Despite a major dividend purchase and redemption program, Home Depot shares have fallen.
Home Depot Gains
estimates: Wall Street expects Home Depot's earnings per share to rise 28 percent to 2.16 per share. Analysts saw home improvement retailer sales rise 11 percent to $ 26.57 billion. Consensus Metrix expects a 4.5% gain in same-store sales.
Results: Home Depot's profit was $ 2.09 per share, or $ 2.25 excluding a charge of 16 cents for its Interline unit. Revenues rose nearly 11% to $ 26.49 billion. Sames store sales increased 3.2%, up 3.7% in the United States.
Perspective: Home Depot is forecasting a 5% increase in revenue this fiscal year, with EPS up 3% to $ 10.03. Analysts were expecting earnings per share of $ 10.26 per Home Depot.
The Dow Jones distribution giant has also agreed to a 32% increase in the quarterly dividend to reach $ 1.36 per share and a $ 15 billion stock repurchase program.
Home Depot stock
Home Depot shares fell 2.5% before the stock market opened today. On Monday, Home Depot's stock fell 1.25% to 189.98, just above its 200-day line. Home Depot's stock was making its way through a long cup base with a purchase point of 215.53.
In November, The Home Depot said investors may face tough comparisons for the fourth quarter – due to hurricane damage in 2017.
Management said at the time that during the fourth quarter, the company had sales of $ 380 million related to hurricanes compared to 2017, while people were buying more supplies for the purpose of rebuilding or repairing. properties that are damaged.
In the third quarter, Home Depot's "Pro" division sales, which serves contractors and professional installers, outpaced DIY sales, the company announced in its latest call for results in November.
Management stated that this trend "reflects the strength of demand in the home improvement market". But as always, analysts will use the company's fourth quarter results to evaluate the overall real estate market.
"Housing measures are being moderated," said CFO Carol Tome at the call. "But the drivers of spending on home improvement are in line with our prospects: house prices continue to appreciate, the housing stock is aging, households are forming and housing continues to rebuild. "
Online sales jumped 28% in the third quarter. The company is also trying to set up a fast distribution network.
Rival Lowe & # 39; s (BAS) decreased 1.4% to 103.52. Lowe stock is also in a long cup base, with a purchase point of 117.80. Lowe's earnings are due Wednesday.
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