The Home Depot, Inc.HD , the world's largest home improvement specialty retailer reported fourth-quarter fiscal 2016 earnings of $1.44 a share that outperformed the Zacks Consensus Estimate of $1.33. Also, quarterly earnings rose 23.1% from $1.17 delivered in the year-ago quarter.
Earnings Estimate Revision: The Zacks Consensus Estimate for 2016 has increased over the last 30 days. Home Depot's performance in the trailing four quarters (excluding the quarter under review) gives a positive picture, with an average surprise of 3.9%.
Home Depot, Inc. (The) Price, Consensus and EPS Surprise
Revenues: Total revenue increased 5.8% year over year to $22,207 million and also surpassed of the Zacks Consensus Estimate of $21,806 million. Comparable-store sales (comps) for fourth-quarter fiscal 2016 rose 5.8%, while U.S. comps increased 6.3%.
Guidance: Home Depot initiated its guidance for fiscal 2017. Both net sales and comps for 2017 are expected to increase 4.6%. Further, management anticipated its diluted earnings per share to increase 10.5% or $7.13, including share repurchases.
Key Events: As a part of its capital allocation strategy, the company raised its long-term dividend payout ratio to 55% of net earnings, compared with 50% targeted earlier. The company also increased its quarterly dividend by 29% to 89 cents per share.
Additionally, the company authorized a new $15 billion share repurchase program, which will replace its existing program. The company's commitment to returning value to shareholders is evident from the share buybacks made since 2002 through Jan 29, 2017. In this period, the company repurchased about 1.3 million shares, which makes for total shareholder returns of over $67 million.
Zacks Rank: Currently, Home Depot carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.
Stock Movement: Home Depot's shares are up nearly 3.5% during pre-market trading hours following the earnings release.
Check back later for our full write up on Home Depot's earnings report!
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