Home Depot on Tuesday reported earnings and sales for the fourth quarter of fiscal 2017 that topped Wall Street’s expectations, as more shoppers flocked to its stores and rung up bigger tickets during the period.
Here’s what the company reported compared with what analysts were expecting, based on a Thomson Reuters survey:
- Earnings per share: $1.69, adjusted, compared with $1.61
- Revenue: $23.9 billion, compared with $23.7 billion
- Same-store sales: an increase of 7.5 percent, compared with 6 percent
“Our ongoing commitment to enhance the interconnected retail experience for our customers, provide localized and innovative product, and deliver best in class productivity resulted in record sales and net earnings for 2017,” CEO and Chairman Craig Menear said in a statement.
Home Depot reported net income for the fourth quarter of $1.8 billion, or $1.52 a share, compared with $1.7 billion, or $1.44 per share, a year ago. Excluding one-time items, the retailer earned $1.69 a share. It reported expenses during the period related to bonus payments and impacts from new U.S. tax legislation.
Revenue climbed 7.5 percent from a year ago to $23.9 billion.
Same-store sales — a key metric for retailers — were up a whopping 7.5 percent. Home Depot’s sales per square foot were notably higher during the quarter, and the average shopper ticket was $64, compared with $60.65 a year ago.
The company also on Tuesday raised its quarterly dividend, for the ninth consecutive year, by 15.7 percent to $1.03 a share.
Coming off a strong year, Home Depot is looking to grow even more robust in the coming months. The company expects its sales will rise by about 6.5 percent in fiscal 2018 and same-store sales will be up 5 percent.
The home improvement retailer continues to thrive alongside its rival Lowe’s, as their business models are much more difficult to replicate online.
Home Depot is also bringing new merchandise to its stores, having recently inked a deal with Tesla to sell the carmaker’s residential solar panels and Powerwall (batteries) at 800 Home Depot locations.
As of Friday’s market close, Home Depot shares have climbed more than 30 percent from a year ago.
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