Home Depot shares fell over 8% today after the company reported Q4 earnings. The home improvement store beat on revenue, but missed on earnings estimates — Home Depot credited inflation for some of its sales boost, and that didn’t sit well with investors. 🤷
Revenue: $35.72 billion, +11% YoY (compared to estimates of $34.87)
Earnings per share: $3.21, +17% YoY (compared to estimates of $3.18)
Guidance: 2.5% increase in sales, 4.7% increase in EPS for the full year
The highlight of the company’s presentation was its sales figure, which showed +10.7% YoY growth from Q4 2020. Home Depot’s sales came in at $35.7 billion, a $3.5 billion increase from Q4 the year before. The ultra-hot housing market is also working to Home Depot’s advantage because a higher quantity of homeowners are renovating. 🔨
Home Depot’s Chairman and CEO, Craig Menear, shared “Our ability to grow the business by over $40 billion in the last two years is a testament to investments we have made in the business, our ability to execute with agility, and our associates’ relentless focus on our customers. I would like to thank all of our associates, as well as our supplier partners, for their hard work and dedication to serving our customers, communities and each other.”
Home Depot revealed a 15% increase to its dividend, which will pay out $7.60/share annually to investors starting March 24, 2022. Home Depot will also appoint a new CEO in the coming months.
$HD is up 0.18% in afterhours.