Home improvement retailer Home Depot (NYSE:HD) fell in pre-market trading after its bleak outlook disappointed investors. For FY24, the retailer has projected sales growth of around 1%, including the 53rd week, while comparable sales are expected to decline by around 1%. Home Depot anticipates that its diluted earnings will grow by 1% year-over-year. This was below Wall Street estimates of earnings per share growth of around 3% and revenue growth of 1.5%.
The company saw a decrease in its retail sales in the fourth quarter. The retailer posted sales of $34.8 billion, a decline of 2.9% year-over-year but above consensus estimates of $34.64 billion. HD’s comparable sales decreased by 3.5% in the fourth quarter, while comparable sales in the U.S. declined by 4%.
The company reported Q4 net earnings of $2.82 per share compared to earnings of $3.30 per diluted share in the same period last year. Still, this beat consensus estimates of $2.77 per share.
Home Depot announced that its Board of directors approved a quarterly dividend of $2.25 per share, an increase of 7.7%, which equates to an annual dividend of $9 per share. The dividend will be payable on March 21 to shareholders of record at the close of business on March 7, 2024.
Is Home Depot a Good Stock to Buy?
Analysts remain cautiously optimistic about HD stock with a Moderate Buy consensus rating based on 11 Buys and four Holds. Over the past year, HD stock has surged by more than 25%, and the average HD price target of $377.71 implies an upside potential of 4.2% at current levels. However, it’s worth noting that estimates will likely change following today’s earnings report.
