Home improvement retailer Home Depot Inc (NYSE:HD) has today reported fourth quarter earnings that exceeded market forecasts as a stronger economy and rising house values encouraged shoppers to invest in their properties.
Net earnings came to $1.7bn in the fourth quarter, or $1.44 per diluted share, compared with net earnings of $1.5bn, or $1.17 per diluted share, in the same period a year earlier. Analysts expected $1.34 earnings per share, according to Thomson Reuters data.
Revenue rose to $22.2bn from $20.9bn, ahead of forecasts of $21.8bn.
Comparable store sales grew 5.8%, compared to analysts’ estimates for 3.7% increase.
The company lifted its quarterly dividend by 29% to 89c and raised its targeted dividend payout ratio from 50% to 55% of net earnings.
In fiscal year 2016, earnings per diluted share climbed to $6.45 from $5.46 while revenue increased to $95.6bn from $88.5bn. Comparable store sales for 2016 rose 5.6%.
"Our focus on providing localized and innovative product selection, improving the interconnected customer experience, and driving productivity resulted in record sales and net earnings for 2016," said Craig Menear, chairman, chief exeutive and president.
"Our associates responded to a healthy housing market and strong customer demand, and I'd like to thank them for their execution, hard work and continued dedication to our customers."
In fiscal year 2017 Home Depot expects revenue and the same growth in comparable store sales to both grow 4.6%.
Shares rose 1.03% to $143.0 ahead of the opening bell in the US.