Goldman Sachs Reports Solid 4Q For The Home Depot

Goldman Sachs has published a report on The Home Depot HD. According to the report, HD reported 4Q 2010 EPS of $0.36 vs. $0.24 a year earlier. “EBIT was ahead of our forecast and consensus, driven entirely by sales, which exceeded our expectation (SSS +3.9% vs. our 1.8% and the Street at 1.7%, including US up a sharp 4.8%). Note that roughly 1.7 cents of EPS reflected a one-time benefit from release of a reserve associated with gift card accruals in the wake of an IRS ruling. Without that item, EPS would have approximated 34.4 cents.” Goldman Sachs said that the estimates are target are under review pending today's conference call. “We believe that the bar for HD was high, but that the firm met it, with sales driving a high quality beat, and an incremental increase to FY2011 guidance. All eyes will be on commentary on February to date and the 1Q outlook, as stiff compares loom large in the first half; we expect HD to guide to SSS growth in every quarter.” The Home Depot closed yesterday at $38.48.