Home Depot (NYSE:HD) on Tuesday beat Wall Street’s earnings expectations for the fourth quarter, and management said the results show that its significant investments are paying off.
For the fourth quarter that ended Feb. 2, Home Depot reported that net income rose 5.8% to $2.48 billion, or $2.28 a share, from $2.34 billion, or $2.09, a year earlier. Analysts expected the company to earn $2.10 a share.
Revenue for the quarter fell 2.7% to $25.78 billion from $26.49 billion a year earlier but outpaced analyst estimates of $25.76 billion. Fiscal 2019 was a week shorter than fiscal 2018. Excluding the extra week of 2018, total sales would have increased nearly 4% for the quarter, the company said.
Home Depot’s sales per square foot were $425.70, up nearly 3% from $414.17 a year earlier. Its average ticket also increased to $68.29, up about 4% from $65.59 a year earlier.
Home Depot’s shares have been trading near an all-time high, buoyed by a strong U.S. economy and a housing market with appreciating home values.
But the company is been under pressure as it spends billions of dollars to integrate its brick-and-mortar stores and online business. It announced plans in 2017 to invest about $11 billion over three years as part of its "One Home Depot" program.
The Atlanta-based home improvement retailer’s shares were up $4.78, or 2%, in early Tuesday trading on the earnings news, to $244.48. It also increased its dividend by 10% and backed its prior forecast for the year.
