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Retail

Home Depot shares gain on fourth quarter earnings beat

Home Depot Inc (NYSE:HD, ETR:HDI) shares moved higher as the home improvement retailer’s fourth quarter earnings beat estimates.

For the quarter, earnings per share (EPS) of $3.02 narrowly beat Wall Street estimates of $3.01.

Revenue was $39.7 billion, ahead of estimates of $39.16 billion.

Comparable sales increased by 0.8% after eight straight quarters of declines, better than the 1.7% decline expected by analysts.

For the full year, sales were $159.5 billion, up by $6.8 billion or 4.5% from the previous year and ahead of the consensus $159 billion.

Adjusted EPS was $15.24, slightly below the $15.25 for fiscal 2023, but ahead of estimates of $15.15.

"Our fourth quarter results exceeded our expectations as we saw greater engagement in home improvement spend, despite ongoing pressure on large remodeling projects," Home Depot CEO Ted Decker said in a statement.

"Throughout the year, we remained steadfast in our investments across our strategic initiatives to position ourselves for continued success, despite uncertain macroeconomic conditions and a higher interest rate environment that impacted home improvement demand.

Home Depot shares added 3.5% at about $396 late morning on Tuesday.

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