Home Depot Q4 Profit Rises 32%, Revenue Up 14%; Beats Wall Street View; Boosts Dividend 34%

Home Depot Q4 Profit Rises 32%, Revenue Up 14%; Beats Wall Street View; Boosts Dividend 34%


Before the bell on Tuesday, home improvement retailer The Home Depot, Inc. (HD) reported a rise in fourth quarter profit and revenue, both topping Wall Street analysts’ expectations.

The Atlanta, Georgia-based company posted a fourth quarter net income of $1.02 billion, or 68 cents per share, up 32% from $774 million, or 50 cents per share, earned in the same period of 2011.

Adjusting for certain, one-time items, the company earned 67 cents per share. According to analysts polled by Thomson Reuters, HD was expected to earn 64 cents per share. Projections by analysts usually exclude one-time items.

Home Depot sales for the fourth quarter came in at $18.25 billion, up about 14% from $16.01 billion in sales in the same quarter a year earlier. This result was able to top the analysts’ estimate of $17.69 billion in revenue. Furthermore, comparable-store sales rose 7% versus the prior year period; US comparable-store sales were up 7.1%.

Looking forward, Home Depot is expecting full year 2013 earnings to rise roughly 12% to $3.37 per share. This estimate factors in the $17.0 billion share buyback plan that the company also announced on Tuesday. Analysts are projecting EPS to come in at $3.49 for the year.

Additionally, the company declared a 34% increase to its quarterly dividend payout. HD will now pay 39 cents per share, up from the previous payout of 29 cents per share.

Home Depot shares were up $1.03, or +1.61%, during pre-market trading on Tuesday. The stock is down -3.79% over the past twelve months.

The Bottom Line
Shares of Home Depot (HD) have a dividend yield of 2.44% based on last night’s closing price of $63.92 and the company’s updated annualized dividend payout of $1.56 per share.

The Home Depot, Inc. (HD) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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