Home Depot's Q4 Performance: Revenue And EPS Beat, Dividend Hike And More

Home improvement retailer Home Depot Inc HD reported a fourth-quarter FY23 sales decline of 2.9% year-on-year to $34.79 billion, beating the analyst consensus estimate of $34.64 billion.

EPS of $2.82 beat the analyst consensus of $2.77. The stock price declined after the results.

Customer transactions for the quarter fell 1.7%. Comparable sales decreased 3.5%, and comparable sales in the U.S. dropped 4.0%.

Gross profit fell 3.5% Y/Y to $11.5 billion. The operating margin was 11.9%, and operating income for the quarter plunged 12.8% to $4.1 billion.

The operating expenses increased 2.7% Y/Y to $7.4 billion.

The average ticket was $88.87, a 1.3% decrease, and sales per retail square foot declined 3.6% to $550.50.

Home Depot held $3.76 billion in cash and equivalents as of January 28, 2024. Operating cash flow for the fiscal year ended January 28, 2024 totaled $21.2 billion.

Dividend: The board of directors approved a 7.7% increase in its quarterly dividend to $2.25 per share, which equates to an annual dividend of $9.00 per share.

2024 Outlook: Home Depot expects total sales growth of approximately 1.0% or $154.2 billion versus $155.0 billion consensus and comparable sales decline of approximately 1.0%.

It expects EPS growth of approximately 1.0% or $15.26 versus $15.61 consensus.

Will Home Depot Stock Go Up?

When trying to assess whether or not Home Depot will trade higher from current levels, it's a good idea to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target of $374.0 on Home Depot. The Street high target is currently at $400.0 and the Street low target is $335.0. Of all the analysts covering Home Depot, 8 have positive ratings, 3 have neutral ratings and no one has negative ratings.

In the last month, 6 analysts have adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Home Depot have performed in recent history.

Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Home Depot is 19.8% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.

For a broad overview of everything you need to know about Home Depot, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.

Price Action: HD shares traded lower by 2.03% at $354.99 premarket on the last check Tuesday.

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