Home Depot's 4Q Revenue Up 5.8% Behind Strong Home Buying Market

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Shares of Home Depot Inc. HD have continued to rise as the company reported higher than expected sales on the back of housing market growth. Home Depot rose 1.41% to $145.02 per share in after-hours trading Tuesday. More impressively, its shares have risen 12% over the past three months.

The Atlanta-based home improvement giant posted fourth quarter 2016 earnings per share of $1.44 on revenue of $22.2 billion, which beat the Zacks consensus of 21.8 billion. Its revenue grew 5.8% year-over-year. The company's full-year 2016 revenue was $94.6 billion, up 6.9% from the year prior.

Home Depot posted a fourth quarter profit of $1.7 billion and is currently a Zacks Rank #3 (HOLD). The company also authorized a $15 billion share repurchase program.

At the end of the fourth quarter, the world's largest home improvement retailer reported it operated a total of 2,278 retail stores in all 50 states, Mexico, Canada and more. Home Depot's sales per square foot rose 5.7%.

Home Depot's same-store sales rose 5.8% in the fourth quarter. The strong housing market encouraged bigger home-improvement projects and more in-store spending. Low mortgage rates have kept the increasingly costly U.S. housing market somewhat attainable.

"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," President and CEO Craig Menear said in a press release.

"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."

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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