Home Depot’s same-store sales surge in final quarter of 2019

Business

In this Monday, Jan. 27, 2020 photo a passer-by, below left, walks toward an entrance to a Home Depot store location, in Boston. Home Depot Inc. reports financial results on Tuesday, Feb. 25. (AP Photo/Steven Senne)

Home Depot reported a better-than-expected fourth quarter with strong comparable-store sales. The home improvement retailer also boosted its quarterly dividend by 10%.

Shares rose 3% in premarket trading Tuesday.

“Home Depot’s numbers are important as they, perhaps more than those of other retailers, reflect underlying consumer confidence: the housing market and big-ticket spending are leading indicators of the broader economy,” Neil Saunders, managing director of GlobalData Retail, said in a statement.

A report released Tuesday, showed that U.S. home prices rose at a faster pace in December, with mortgage rates remaining low and a falling supply of available properties. The S&P CoreLogic Case-Shiller 20-city home price index climbed 2.9% in December from a year earlier after posting a 2.5% gain in November.

The latest figures on consumer confidence will be released Tuesday by the Conference Board, a non-profit business research group.

For the three months ended Feb. 2, Home Depot Inc. earned $2.48 billion, or $2.28 per share. That’s better than the per-share earnings of $2.11 projected by industry analysts, according to a survey by Zacks Investment Research. A year earlier the Atlanta company earned $2.34 billion, or $2.09 per share.

Revenue declined to $25.78 billion from $26.49 billion. The year-ago period included an extra week. The results still topped Wall Street’s forecast of $25.75 billion.

Sales at stores open at least a year rose 5.2%, which was also better than analysts had expected. Those sales climbed 5.3% in the U.S.

Rival Lowe’s Cos., which will report its financial results on Wednesday, saw its shares climb 2.1% before the market open.

Home Depot anticipates earnings this year of about $10.45 per share, far better than analysts projections of $10.08. It expects revenue growth of approximately 3.5% to 4%.

Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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