On Tuesday, Feb. 20, home-improvement giant Home Depot
- Total sales grew 4%, but total retail store sales fell 2%, and related same-store sales fell 6.6%. HD Supply sales accounted for the growth, improving 64.4% to $2.9 billion, or about 14% of total sales.
- Diluted earnings fell 23.3%, including a $0.04 charge related to CEO severance packages. Excluding the charge, earnings met analyst expectations.
- Management did not provide 2007 guidance, but it plans to update investors with its "business strategy and financial outlook for fiscal 2007" at its annual analyst conference on Feb. 28.
- Home Depot is a two-star stock in CAPS, our interactive stock database.
(Figures in millions, except per-share data)
Income Statement Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Sales |
$20,265 |
$19,489 |
4.0% |
Net Profit |
$925 |
$1,285 |
(28.0%) |
EPS |
$0.46 |
$0.60 |
(23.3%) |
Diluted Shares |
2,004 |
2,128 |
(5.8%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q4 2006 |
Q4 2005 |
Change* |
|
---|---|---|---|
Gross Margin |
32.76% |
33.83% |
(1.07) |
Operating Margin |
7.91% |
10.51% |
(2.60) |
Net Margin |
4.56% |
6.59% |
(2.03) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Cash + ST Invest. |
$614 |
$807 |
(23.9%) |
Accounts Rec. |
$3,223 |
$2,396 |
34.5% |
Inventory |
$12,822 |
$11,401 |
12.5% |
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Accounts Payable |
$7,356 |
$6,032 |
21.9% |
Long-Term Debt |
$11,643 |
$2,672 |
335.7% |
Learn the ways of the balance sheet.
Cash Flow Highlights
FY 2006 |
FY 2005 |
Change |
|
---|---|---|---|
Capital Expenditures |
$3,542 |
$3,881 |
(8.7%) |
Home Depot must be off making repairs -- they didn't include a cash flow statement. Fools will have to wait until the company files its 10-K with the SEC for operating cash flow details.
Find out why Fools always follow the money.
Comparable companies:
-
Lowe's
(NYSE:LOW) -
Tractor Supply
(NASDAQ:TSCO) -
Builders FirstSource
(NASDAQ:BLDR) -
Building Materials Holding
(NYSE:BLG)
Related Foolishness:
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Home Depot is a recommendation of Motley Fool Inside Value. Discover why the home retailer has built up a market-beating performance record with a free 30-day trial.
Fool contributor Ryan Fuhrmann is long shares of Home Depot and Tractor Supply but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.