Home Depot’s recent fourth-quarter performance presents a mixed picture amid ongoing consumer uncertainty in the housing market. Revenue for the quarter decreased by 4%, landing at $38.2 billion, slightly below the anticipated $38.3 billion as estimated by Bloomberg consensus data. However, adjusted earnings exceeded expectations, coming in at $2.72 per share compared to the forecasted $2.55.
In terms of same-store sales, the company reported a modest growth of 0.4%, contrary to analysts’ predictions of a 0.4% decline. This increase was largely attributed to a rise in average transaction size, although the total number of consumer transactions showed a decline. CEO Ted Decker commented on the results, stating, “For the fourth quarter, our results were largely in line with our expectations, reflecting the lack of storm activity in the third quarter and ongoing consumer uncertainty and pressure in housing. Adjusting for storms, underlying demand was relatively stable throughout the year.” Following the announcement, Home Depot’s stock saw a nearly 3% uptick in premarket trading, contributing to an approximate 10% increase in shares since the beginning of the year, while the S&P 500 index has remained relatively unchanged.
Looking at the fiscal year as a whole, Home Depot delivered better-than-expected results across key financial metrics. The company reported total revenue of $164.68 billion, surpassing the projected $164.59 billion. Adjusted earnings for the year reached $14.69, slightly above the expected $14.53. Same-store sales increased by 0.3%, exceeding Wall Street’s forecast of 0.2%.
For the upcoming fiscal year, Home Depot has reiterated its guidance provided during its investor day in December. The company expects total sales growth in the range of 2.5% to 4.5% and anticipates same-store sales growth to remain flat or rise by up to 2%. Adjusted earnings for the coming year are projected to be stable or increase by up to 4% from the $14.69 posted this fiscal year.
