Home Depot (HD) Tops Q4 EPS by 11c; $15B Stock Buyack

February 21, 2017 6:01 AM EST

Home Depot (NYSE: HD) reported Q4 EPS of $1.44, $0.11 better than the analyst estimate of $1.33. Revenue for the quarter came in at $22.2 billion versus the consensus estimate of $21.75 billion.

The board of directors has authorized a $15.0 billion share repurchase program, replacing its previous authorization. Since 2002 and through January 29, 2017, the Company has returned more than $67 billion of cash to shareholders through repurchases, repurchasing approximately 1.3 billion shares.

The Company's targeted dividend payout ratio will be increased from 50 percent to 55 percent of net earnings.

The board of directors declared a 29 percent increase in the quarterly dividend to $0.89 per share. The dividend is payable on March 23, 2017, to shareholders of record on the close of business on March 9, 2017. This is the 120th consecutive quarter the Company has paid a cash dividend;

Fiscal 2017 Guidance

The Company provided the following guidance for fiscal 2017:

  • Sales growth of approximately 4.6 percent
  • Comparable store sales growth of approximately 4.6 percent
  • Six new stores
  • Gross margin decrease of approximately 15 basis points
  • Operating margin expansion of approximately 30 basis points
  • Tax rate of approximately 36.3 percent
  • Share repurchases of approximately $5.0 billion
  • Diluted earnings-per-share growth after anticipated share repurchases of approximately 10.5 percent, or $7.13
  • Capital spending of approximately $2.0 billion
  • Depreciation and amortization expense of approximately $2.0 billion
  • Cash flow from the business of approximately $11.3 billion

For earnings history and earnings-related data on Home Depot (HD) click here.

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