Home Depot swings to profit, gives rosier outlook

Discussion in 'Stocks' started by ASusilovic, Feb 23, 2010.

  1. NEW YORK (MarketWatch) -- In another sign that the battered home-improvement sector is poised for a recovery, Home Depot Inc. reported a better-than-expected fourth-quarter profit Tuesday on after its comparable sales unexpectedly increased.

    The largest home-improvement retailer also raised its quarterly dividend for the first time since 2006 and gave a profit outlook that also topped Wall Street expectations.

    Home Depot shares rose 1.4% in pre-market trading.

    The Atlanta-based company swung to a profit of $342 million, or 20 cents a share, from a loss of $54 million, or 3 cents a share, in the year-earlier period. Sales in the quarter ended Jan. 31 decreased 0.3% to $14.6 billion.

    Comparable sales rose 1.2%, including a 1.1% drop from its U.S. stores. Analysts had expected same-store sales to drop 2%.

    On an adjusted basis, earnings from continuing operations totaled 24 cents a share.

    Analysts, on average, estimated the Atlanta-based retailer and a Dow member to earn 16 cents a share on sales of $14.03 billion, according to FactSet.

    In 2010, it forecast profit of $1.79 a share with comparable sales increasing about 2.5%. Analysts surveyed by FactSet had expected profit of $1.71 a share.

    The home improvement retailer lifted its quarterly dividend by 5% to 23.625 cents a share, the first increase since 2006.


    You must be impressed... :)
  2. Yes, most impressive over the last decade. Ditto for a 12% ROE on 10 billion of debt..........oops, I mean leverage.

    But, it is at a round number. Either runs or repels.