Home Depot (NYSE: HD) reported earnings on Feb. 21. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Jan. 29 (Q4), Home Depot beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved significantly.
Margins grew across the board.
Revenue details
Home Depot logged revenue of $16.01 billion. The 22 analysts polled by S&P Capital IQ expected sales of $15.52 billion on the same basis. GAAP reported sales were 5.9% higher than the prior-year quarter's $15.13 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.50. The 26 earnings estimates compiled by S&P Capital IQ predicted $0.43 per share. GAAP EPS of $0.50 for Q4 were 39% higher than the prior-year quarter's $0.36 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 35.0%, 30 basis points better than the prior-year quarter. Operating margin was 8.3%, 140 basis points better than the prior-year quarter. Net margin was 4.8%, 90 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $17.45 billion. On the bottom line, the average EPS estimate is $0.60.
Next year's average estimate for revenue is $72.55 billion. The average EPS estimate is $2.80.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 3,302 members out of 4,242 rating the stock outperform, and 940 members rating it underperform. Among 1,032 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 876 give Home Depot a green thumbs-up, and 156 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Home Depot is outperform, with an average price target of $43.72.
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