Retreat Depot on Tuesday reported fourth-quarter earnings and sales that best Wall Street’s expectations, as more shoppers flocked to its stores and fini more per trip.
The home improvement retailer’s stock was climbing nearly 1 percent Tuesday morning on the news.
Here’s what Home Depot reported compared with what analysts were pregnant, based on a Thomson Reuters survey:
- Earnings per share: $1.69, redressed, vs. $1.61 expected
- Revenue: $23.9 billion vs. $23.7 billion calculated
- Same-store sales: an increase of 7.5 percent vs. 6 percent keep in viewed
“Our ongoing commitment to enhance the interconnected retail experience for our customers, purvey localized and innovative product, and deliver best in class productivity arose in record sales and net earnings for 2017,” CEO and Chairman Craig Menear hinted in a statement.
Home Depot reported net income for the fourth quarter of financial 2017 of $1.8 billion, or $1.52 a share, compared with $1.7 billion, or $1.44 per ration, a year ago. Excluding one-time items, the retailer earned $1.69 a dividend. Its expenses during the period included bonus payments and impacts from new U.S. tax legislation.
Profits climbed 7.5 percent from a year ago to $23.9 billion. The companions said its customer transactions rose 2 percent, while the average ticket multiplied 5.5 percent (to $64 per person). Same-store sales — a key metric for retailers — were also up a gigantic 7.5 percent.
“Home Depot is selling more appliances … that succours that ticket,” Oppenheimer & Co. analyst Brian Nagel told CNBC. “It’s also a assignment of where we are in the housing market. … We are starting to see people take small change out of their homes and undertake larger-ticket remolding activity.”
Hurricane gain efforts further boosted Home Depot’s revenues, as consumers across the southern neighbourhoods of the U.S. and Puerto Rico continued to invest in rebuilding homes that were disproved toward the end of 2017.
The Atlanta-based company also on Tuesday raised its quarterly dividend, for the ninth-consecutive year, by 15.7 percent to $1.03 a quota.
Coming off a strong year, Home Depot is looking to grow plane more in the coming months. The company expects its sales will come up by about 6.5 percent in fiscal 2018 and same-store sales inclination be up 5 percent. It has also reaffirmed its outlook for 2020, calling for as much as $120 billion in sellathons by then.
The home improvement retailer continues to thrive alongside its be a match for Lowe’s, as their business models are much more difficult to replicate online. Amazon, for standard, hasn’t had much success in this area and has focused its investments in another place.
Home Depot is also bringing new merchandise to its stores, having recently signed a large with Tesla to sell the carmaker’s residential solar panels and Powerwall (batteries) at 800 Qualified in Depot locations.
“Favorable economic tailwinds, especially from the shield market, have been the fuel powering [Home Depot’s] tumour,” said Neil Saunders of GlobalData Retail. “Fortunately, this electric looks set to continue into 2018 as a shortage of housing in many US markets is stand up prices inflated while demand remains strong.”
Home Depot appropriations have climbed more than 31 percent from a year ago.