Home Depot (HD) Tops Q4 EPS by 7c; Hikes Dividend 17%

Home Depot (NYSE: HD) reported Q4 EPS of $1.17, $0.07 better than the analyst estimate of $1.10. Revenue for the quarter came in at $21 billion versus the consensus estimate of $20.39 billion.

Comparable store sales for the fourth quarter of fiscal 2015 were positive 7.1 percent, and comp sales for U.S. stores were positive 8.9 percent.

The Company today announced that its board of directors declared a 17 percent increase in its quarterly dividend to $0.69 per share. "As a testament to our commitment to create value for our shareholders, the board has increased the dividend for the seventh consecutive year," said Menear.

The dividend is payable on March 24, 2016, to shareholders of record on the close of business on March 10, 2016. This is the 116th consecutive quarter the Company has paid a cash dividend.

Combined with today's announcements, the Company reiterated its capital allocation principles:

• Dividend Principle: Targeting a dividend payout ratio of approximately 50 percent of net earnings.
• Share Repurchase Principle: After meeting the needs of the business, use excess cash to repurchase shares, with the intent of completing its remaining $11.0 billion share repurchase authorization by the end of fiscal 2017.
• Return on Invested Capital Principle: Maintain a high return on invested capital, with a goal of reaching 35 percent by the end of fiscal 2018.

GUIDANCE:

Home Depot sees FY2016 EPS of $6.12 - $6.18, versus the consensus of $6.16. Comps expected up 3.7 to 4.5 percent.

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

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