Home Depot Q4 Beats Wall Street As Comps Romp

For the fourth quarter, The Home Depot posted sales of $19.16 billion of fiscal 2014, an 8.3% increase from the year prior period, while comparable store sales overall advanced 7.9%, and those for stores in the United States gained 8.9%.

Net earnings were $1.38 billion, or $1.05 per diluted share, versus $1.01 billion, or 73 cents per diluted share, in last year’s quarter, according to the retailer.

Fiscal 2014 fourth quarter results reflect a pretax gain on sales of $111 million, or five cents per diluted share, Home Depot maintained, that related to the company’s partial sale of equity ownership in HD Supply Holdings, Inc. With the one-time benefit factored out, diluted earnings per share were $1 for the fourth quarter, Home Depot reported.

A consensus financial analyst estimate compiled by Zacks was for 89 cents per diluted share.

Sales for the full fiscal year were $83.18 billion, an increase of 5.5% from fiscal 2013, Home Depot stated. Total company comps increased 5.3% and U.S. stores comps gained 6.1% for the year. Net earnings were $6.35 billion, or $4.71 per diluted share, versus $5.39 billion, or $3.76 per diluted share, in the fiscal year earlier.

Fiscal 2014 results reflect a pretax gain on sale of $323 million, or 15 cents per diluted share, related to the HD Supply Holdings action. Fiscal 2014 results also reflect a pretax net expense of $33 million, or two cents per diluted share, related to Home Depot’s 2014 data breach, of which $5 million was recognized in the fourth quarter, the company noted.

“We had a strong finish to the year, as strength across the store, the recovering U.S. housing market and solid execution aided our business in 2014,” Craig Menear, Home Depot chairman, CEO and president, said in announcing the financial results.