Home Depot (HD) posted mixed fourth quarter results as consumer uncertainty around the housing market lingers.
In the fourth quarter, revenue fell 4% to $38.2 billion, slightly less than nearly $38.3 billion the street forecasted, per Bloomberg consensus data. Adjusted earnings came in better than expected at $2.72 per share, compared with estimates of $2.55.
Overall same-store sales grew 0.4%, compared to the expected 0.4% decline. The results were driven by a higher ticket size, but drop off in consumer transactions.
“For the fourth quarter, our results were largely in-line with our expectations, reflecting the lack of storm activity in the third quarter and ongoing consumer uncertainty and pressure in housing,” CEO Ted Decker said in the release, “Adjusting for storms, underlying demand was relatively stable throughout the year.”
Home Depot stock rose nearly 3% in premarket trading. Shares are up roughly 10% so far this year. For comparison, the S&P 500 (^GSPC) has been flat.
For the fiscal year, the company posted better than expected results across all key metrics.
Revenue came in at $164.68 billion, more than the $164.59 billion expected, alongside adjusted earnings of $14.69, a tick above the $14.53 expected.
Same-store sales grew 0.3%, more than the 0.2% Wall Street anticipated.
For this fiscal year, the company reiterated guidnce it shared at its investor day back in December. It expects total sales to grow in the range of 2.5% to 4.5%, alongside same-store sales growth of roughly flat to up 2%.
Adjusted earnings for the year are expected to be between flat and up 4.0% from $14.69 posted this fiscal year.