Home Depot sales remain strong in 4th quarter

By AP News

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Home Depot saw its sales remain strong in its fourth quarter as it continues to benefit from a sizzling housing market.

Home Depot saw its sales remain strong in its fourth quarter as it continues to benefit from a sizzling housing market.

Sales for the three months ended Jan. 30 rose to $35.72 billion from $32.26 billion. This beat the $34.88 billion that analysts polled by FactSet forecast.

Sales at stores open at least a year, a key gauge of a retailer's health, climbed 8.1%. In the U.S., the metric increased. 7.6%.

Home improvement stores have been busy during the pandemic as people working from home took on new projects. Many also moved into new homes with more space for a home office.

Sales of previously occupied homes rose in January as a surge in buyers with cash and others eager to avoid higher mortgage rates snapped up properties, leaving the number of available houses on the market at a record low.

Existing home sales rose 6.7% last month from December to a seasonally adjusted annual rate of 6.5 million, the National Association of Realtors said Friday. That’s more than the roughly 6.08 million sales that economists had been expecting, according to FactSet.

A day earlier mortgage buyer Freddie Mac reported that the average rate on a 30-year loan reached 3.92%, up from 3.69% the previous week. The last time the 30-year rate was higher was in May of 2019 when it reached 3.99%.

Home Depot Inc. earned $3.35 billion, or $3.21 per share, in the fourth quarter. A year ago it earned $2.86 billion, or $2.65 per share.

Wall Street expected $3.18 per share.

Looking ahead, the company anticipates fiscal 2022 sales growth and same-store sales growth to be slightly positive. It predicts low single digits earnings per share growth.

Home Depot also said its board approved an increase of 15% in its quarterly dividend, to $1.90 per share.

Shares rose slightly before the market open on Tuesday.

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Author: AP News

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

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