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Home Depot (HD) is advancing 4% after the home-improvement retailer reported stronger-than-expected fourth quarter results and noted that its comparable-store sales had risen nearly 1% versus Q4 of 2023. Moreover, HD increased its dividend.
The Highlights of HD's Q4 Results and Its Guidance
The firm's Q4 revenue jumped 14% versus the same period a year earlier to $39.7 billion, $630 million higher than analysts' average estimate. Its earnings per share climbed to $3.02 from $2.83 in Q4 of 2023. Its adjusted EPS for last quarter was $3.13. Analysts on average had estimated that the company's EPS for Q4 of 2024 would come in at $3.04.
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Home Depot's sales at comparable stores rose 0.8% year-over-year last quarter.
HD expects its revenue to increase 2.8% this year, below analysts' average outlook of a 3.36% gain. HD expects its comparable sales to increase 1% this year, but it predicts that its EPS will fall 3%.
HD's Dividend Increase and Its Comments
Home Depot increased its dividend by 2.2% to $2.30 per share.
"Our fourth quarter results exceeded our expectations as we saw greater engagement in home improvement spend, despite ongoing pressure on large remodeling projects," CEO Ted Decker said in a statement.
The Recent Price Action of HD Stock
In the last month, the shares fell 4.7%, while they have retreated 7% in the last three months. However, it has risen 2.6% so far in 2025.
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Disclosure: None. This article is originally published at Insider Monkey