In this Monday, Jan. 27, 2020 photo a passer-by, below left, walks toward an entrance to a Home Depot store location, in Boston. Home Depot Inc. reports financial results on Tuesday, Feb. 25. (AP Photo/Steven Senne)

Home Depot's same-store sales surge in final quarter of 2019

February 25, 2020 - 7:21 am

Home Depot reported a better-than-expected fourth quarter with strong comparable-store sales. The home improvement retailer also boosted its quarterly dividend by 10%.

Shares rose 2.7% in premarket trading Tuesday.

For the three months ended Feb. 2, Home Depot Inc. earned $2.48 billion, or $2.28 per share. That's better than the per-share earnings of $2.11 projected by industry analysts, according to a survey by Zacks Investment Research. A year earlier the Atlanta company earned $2.34 billion, or $2.09 per share.

Revenue declined to $25.78 billion from $26.49 billion. The year-ago period included an extra week. The results still topped Wall Street's forecast of $25.75 billion.

Sales at stores open at least a year rose 5.2%, which was also better than analysts had expected. Those sales climbed 5.3% in the U.S.

Rival Lowe's Cos., which will report its financial results on Wednesday, saw its share climb slightly before the market open.

Home Depot anticipates earnings this year of about $10.45 per share, far better than analysts projections of $10.08. It expects revenue growth of approximately 3.5% to 4%.

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