Member access

4-Traders Homepage  >  Shares  >  Nyse  >  The Home Depot, Inc.    HD   US4370761029

SummaryQuotesChart AnalysisNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 

The Home Depot, Inc. : Home Depot's 4th-Quarter Net Jumps 32% on Extra Week's Results

02/26/2013 | 06:38am US/Eastern
Recommend:
0
   By Saabira Chaudhuri 
 

Home Depot Inc.'s (HD) fiscal fourth-quarter earnings jumped 32% as the home-improvement-products retailer was helped by a comparison with a year-ago quarter that included one fewer week, pushing results above Street estimates.

Home Depot, like its peers, has been benefiting from recent improvements in the housing market. The broad revival has made the retailer a popular choice with investors, pushing the stock up 36% in the past 12 months.

"We ended the year with a strong performance as our business benefited from a continued recovery in the housing market coupled with sales related to repairs in the areas impacted by Hurricane Sandy," Chief Executive Frank Blake said on Tuesday.

For the quarter ended Feb. 3, Home Depot reported a profit of $1.02 billion, or 68 cents a share, compared with a year-ago profit of $774 million, or 50 cents a share. The latest period included a favorable adjustment to a previously announced China store closing charge of about a penny a share. Stripping this out, per-share earnings for the quarter were 67 cents.

Sales rose 14% to $18.25 billion.

Analysts polled by Thomson Reuters had most recently forecast earnings of 64 cents on revenue of $17.7 billion.

Home Depot noted that the extra week in the fourth quarter of 2012 added about $1.2 billion in revenue versus the year-ago quarter. The extra week increased per-share earnings by about seven cents.

Gross margin narrowed a hair to 34.9% from 35%.

Same-store sales rose 7%, reflecting a 7.1% increase in the U.S. The average ticket was $55.46, a 5.6% rise from a year earlier.

Home Depot raised its quarterly dividend 34% to 39 cents a share. The company's board also authorized a $17 billion share repurchase program, replacing its previous authorization.

For the 2013 fiscal year, Home Depot said it expects per-share earnings of about $3.37--below the $3.49 recently expected by analysts--on same-store sales growth of about 3%.

Last year, Home Depot joined a growing list of companies revamping their strategy in China, as it planned to close the seven big-box stores it operated there and explore other formats like a home-decorations outlet. Home Depot's warehouse model struggled to find a foothold in China, where cheap labor and apartment-based living crimp do-it-yourself demand.

Shares closed Monday at $63.92 and were inactive in recent premarket trading.

--Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Recommend :
0
React to this article
Latest news on THE HOME DEPOT, INC.
1d ago HOME DEPOT : may be latest retailer to be hacked; investigates suspicious credit..
1d ago Wall Street ends mixed, energy shares fall
1d ago Home Depot says probing 'unusual activity' after data breach report
1d ago HOME DEPOT : Block & Leviton LLP : Investigates Credit Card Breach at The Home D..
1d ago HOME DEPOT : probes possible credit card data breach
1d agoDJMARKET SNAPSHOT : Why September May Slow Further S&P Records
1d ago THE HOME DEPOT, INC. : ex-dividend day
2d agoDJMARKET SNAPSHOT : Why September May Slow Further S&P Records
5d ago HOME DEPOT : Compact Power Equipment Rental Hits 1,000 Store Milestone
7d ago HOME DEPOT : Z-Wave expands in retail market with major American retailers showi..
Advertisement
Chart
Duration : Period :
The Home Depot, Inc. Technical Analysis Chart | HD | US4370761029 | 4-Traders
Income Statement Evolution
The Home Depot, Inc. : Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF