Home Depot (HD) Up 4% Following Earnings Beat

The Home Depot, Inc. (HD) reported fourth quarter non-GAAP EPS of $1.00 before the opening bell Tuesday, compared to the consensus estimate of $0.89. Revenues increased 8.3% from last year to $19.16 billion. Analysts expected revenues of $18.67 billion. The stock is currently up $4.13 to a new all-time high of $116.41 and well above the 52-wk range of $74.61 to $113.16.

For FY’16, the home improvement chain, whose 4th quarter same-store sales at all locations rose 7.9% yoy and 8.9% in the U.S., provided EPS guidance of $5.11-$5.17 versus consensus of $5.23 per share. The company also issued revenue projection of $86.1-$87.1 billion, compared to the consensus revenue estimate of $86.31 billion. Separately, the company said it will buy back $18 billion of its shares. It also raised its quarterly dividend by 25.5% to $0.59 per share from $0.47.

On valuation measures, Home Depot Inc. shares, which currently have an average 3-month trading volume of 5.3 million shares, trade at a trailing-12 P/E of 25.62, a forward P/E of 21.47 and a P/E to growth ratio of 1.57. The median Wall Street price target on the name is $111.00 with a high target of $130.00. Currently ticker boasts 16 ‘Buy’ endorsements, compared to 13 ’Holds’ and no ‘Sell’.

Profitability-wise, HD has a t-12 profit and operating margin of 7.32% and 12.27%, respectively. The $147.97 billion market cap company reported $2.18 billion in cash vs. $16.73 billion in debt in its most recent quarter.

HD currently prints a one year return of 47.54%, and a year-to-date return of around 7%.

The chart below shows where the equity has traded over the last 52 weeks.

Home Depot Inc. operates as a home improvement retailer. The company was founded in 1978 and is based in Atlanta, Georgia.

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