Home Depot, the world’s largest home improvement chain, reported higher-than-expected profit and sales helped by a strong housing market in the United States and set a $15 billion share repurchase plan.
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Shares of the company rose 3 percent to $147.20 in premarket trading on Tuesday.
The company also forecast 2017 same-store sales growth of 4.6 percent and profit of $7.13 per share.
The Atlanta, Georgia-based company said same-store sales rose 5.8 percent during the quarter ended Jan. 29, beating analysts’ average estimate of a rise of 3.5 percent, according to research firm Consensus Metrix.
U.S. homebuilding jumped 11.3 percent in December as a firming economy and higher wages due to a tightening labor market boosted demand for rental housing.
The company reported a 5.8 percent rise in quarterly sales to $22.21 billion. Analysts on average had expected $21.81 billion, according to Thomson Reuters I/B/E/S.
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Home Depot’s net earnings rose to $1.74 billion, or $1.44 per share, in the fourth quarter, from $1.47 billion, or $1.17 per share, a year earlier.
Excluding items, the company earned $1.44 per share, beating estimates of $1.34 per share.
(Reporting by Gayathree Ganesan in Bengaluru; Editing by Shounak Dasgupta)
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