Canaccord Genuity Morning Coffee on Home Depot (HD): Giving Some Back
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Price: $331.72 -0.39%
Rating Summary:
25 Buy, 20 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
25 Buy, 20 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Canaccord Genuity Morning Coffee on Home Depot (NYSE: HD): Giving some back.
Canaccord analyst says, "Home Depot got a lift after the company announced it would be buying back $1 billion worth of shares through an accelerated buyback program through Barclays (BCS) investment bank and reiterated its sales and earnings forecast for the coming year. The company will be issuing $2.0 billion worth of debt, half of which will be used to refinance existing outstanding notes, while the other half will be used to fund the share repurchase program. The buybacks will be on top of the $2.5-billion plan announced earlier this year, and according to CEO Frank Blake, the company took “advantage of the attractive interest rate environment” to raise the debt. Last year was the company’s first year of positive same-store sales growth since 2006 and Blake has previously stated that creating share holder value is a top focus for Home Depot as the business continues its stabilization following the recession. The company has bought back approximately $30.1 billion in common stock since 2002 and recently increased its dividend by 5.8% as the company seeks to return unneeded cash on its balance sheet to investors. Home Depot also confirmed its earnings guidance for the full year, forecasting earnings growth of about 9.5%, which would see EPS of $2.20 and sales growth of 2.5% as the company begins to face tougher comps."
Canaccord analyst says, "Home Depot got a lift after the company announced it would be buying back $1 billion worth of shares through an accelerated buyback program through Barclays (BCS) investment bank and reiterated its sales and earnings forecast for the coming year. The company will be issuing $2.0 billion worth of debt, half of which will be used to refinance existing outstanding notes, while the other half will be used to fund the share repurchase program. The buybacks will be on top of the $2.5-billion plan announced earlier this year, and according to CEO Frank Blake, the company took “advantage of the attractive interest rate environment” to raise the debt. Last year was the company’s first year of positive same-store sales growth since 2006 and Blake has previously stated that creating share holder value is a top focus for Home Depot as the business continues its stabilization following the recession. The company has bought back approximately $30.1 billion in common stock since 2002 and recently increased its dividend by 5.8% as the company seeks to return unneeded cash on its balance sheet to investors. Home Depot also confirmed its earnings guidance for the full year, forecasting earnings growth of about 9.5%, which would see EPS of $2.20 and sales growth of 2.5% as the company begins to face tougher comps."
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