In This Article:
On Tuesday, Home Depot Inc (NYSE:HD) stock is trading higher in a volatile session after the home improvement retailer reported its fourth-quarter 2024 results and provided its 2025 outlook.
HD reported fourth-quarter sales growth of 14.1% year-over-year to $39.70 billion, beating the consensus estimate of $39.14 billion. Adjusted EPS was $3.13 (+9.4% year over year), beating the consensus of $3.00.
Customer transactions for the quarter rose 7.6%. Comparable sales increased 0.8%, and comparable sales in the U.S. rose 1.3%.
Margins: Gross profit rose 13.3% YoY to $13.03 billion, with a margin of 32.8%, down 25 bps YoY. The operating margin was 11.3%, down 60 bps YoY, and operating income for the quarter rose 8.5% to $4.495 billion. The adjusted operating margin slipped to 11.7% from 12.1% YoY.
Operating expenses increased 15.9% year over year to $8.539 billion.
The average ticket in the fourth quarter was $89.11, a 0.3% increase, and sales per retail square foot increased 1.2% to $556.90.
As of February 2, the company held $1.659 billion in cash and equivalents. It generated an operating cash flow of $19.810 billion for fiscal 2024, compared to $21.172 billion a year ago.
At the end of the quarter, HD operated 2,347 retail stores and over 780 branches across the U.S., Canada, and Mexico.
Dividend: Home Depot announced a 2.2% increase in its quarterly dividend to $2.30 per share, totaling an annual dividend of $9.20 per share. The dividend is payable on March 27, 2025, to shareholders of record as of March 13, 2025.
2025 Outlook: Home Depot forecasts total sales growth of 2% year-over-year, reaching $163.98 billion, slightly below the consensus of $164.17 billion.
Comparable sales are expected to rise approximately 1%, with an adjusted operating margin of around 13.4%.
The company projects adjusted EPS to decline by about 2%, from $15.24 to $14.94, falling short of the $15.57 consensus estimate.
Price Action: HD shares are trading higher by 1.15% at $386.80 premarket on the last check Tuesday.
Also Read:
Photo: Sockagphoto via Shutterstock
UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.
Get the latest stock analysis from Benzinga?
This article Home Depot Lifts Annual Dividend After Strong Q4, But Soft 2025 Outlook Weighs On Stock originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.