Home Depot reported better-than-expected fiscal fourth-quarter earnings early Tuesday. Shares erased early losses, with the Dow Jones home improvement retail giant trading near two-year highs.
Home Depot Earnings
Home Depot reported that Q4 earnings declined nearly 15% to $2.82 a share while revenue fell 2.9% to $34.79 billion. But those beat analyst forecasts for Home Depot earnings of $2.77 a share and revenue at $34.643 billion, according to FactSet. Same-store sales fell 3.5% and U.S. comps sank 4%. Wall Street had expected overall comps to slip 3.2%.
Outlook: Home Depot sees EPS and sales rising 1% in the current year, with comps down 1%. The home improvement giant said it's still seeing customers avoid larger projects.
Home Depot did raise its quarterly dividend by 8% to $2.25 a share.
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Home Depot Stock
HD stock edged up 0.1% to 362.57 on Tuesday, erasing early losses. Shares dipped 0.2% last week after hitting a two-year high on Monday, Feb. 12. Investors could use a move above the Feb. 12 high of 368.72 as a buying opportunity from the 10-week line.
Still, the relative strength line has fallen over the past month and hasn't made any progress for the past several years. The RS line, the blue in the chart provided, tracks a stock's performance vs. the S&P 500 index.
Home Depot rival Lowe's rose 2.1% to 226.85 last week, but fell back below a 227 cup-with-handle buy point on Friday. Lowe's shares edged down 0.6% on Tuesday to 225.51.
Lowe's will release Q4 results on Feb. 27.
Fellow Dow retail titan Walmart topped views before Tuesday's open.
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