In its recent fourth-quarter financial report, Home Depot (HD) exhibited mixed results amid ongoing consumer uncertainty in the housing market. The company announced a revenue decline of 4%, totaling $38.2 billion, slightly falling short of the nearly $38.3 billion anticipated by analysts according to Bloomberg consensus data. Despite the revenue dip, adjusted earnings surpassed expectations, coming in at $2.72 per share compared to the forecasted $2.55.
Home Depot also reported a modest increase in overall same-store sales, which grew by 0.4%. This figure was in contrast to expectations of a 0.4% decline, highlighting a resilience in consumer behavior driven by larger purchase sizes, even as the number of transactions decreased. CEO Ted Decker commented on the results, noting that they were largely aligned with company expectations and reflective of factors such as lower storm-related activity in the third quarter and prevailing uncertainties surrounding the housing market. He emphasized that when accounting for storm impacts, the underlying demand remained relatively stable throughout the year.
In premarket trading following the earnings release, Home Depot’s stock experienced a nearly 3% uptick, contributing to an approximate 10% rise in share value year-to-date. In comparison, the S&P 500 index has remained essentially flat during the same period.
For the entirety of the fiscal year, Home Depot reported stronger-than-expected results across key metrics. Total revenue reached $164.68 billion, surpassing the $164.59 billion anticipated. Adjusted earnings for the year hit $14.69 per share, slightly above the projected $14.53. Same-store sales also outperformed expectations, growing by 0.3% against a Wall Street estimate of 0.2% growth.
Looking ahead, the company reiterated its guidance provided during an investor day in December. It anticipates total sales growth between 2.5% and 4.5% for the upcoming fiscal year, with same-store sales expected to remain flat or increase up to 2%. Additionally, adjusted earnings for the new fiscal year are projected to remain steady or grow by up to 4% from the $14.69 reported for the past year.
