Home Depot (HD) 4Q16 Results: Earnings Beat, Solid 2017 Guidance

Executive Summary

• Home Depot reported 4Q16 EPS of $1.44, up 23.1% from the year-ago quarter and beating the consensus estimate of $1.33. The company reported revenue of $22.21 billion, up 5.8% from $20.98 billion in the year-ago quarter and above the $21.79 billion consensus estimate.
• Same-store sales rose by 8% during the quarter, beating the 3.7% consensus estimate. Comps for the US were up 6.3%. Total comps were driven by an increase of 2.9% in both transactions and average ticket. All merchandising departments posted positive comps, led by flooring and tools, which reported double-digit comp growth in the quarter.
• The company expects FY17 total revenue growth of 4.6%, to about $23.23 billion, and it expects full-year comp growth of 4.6%. The consensus estimate calls for sales growth of 4.1% and comp growth of 4.6%. The company expects FY17 EPS of $7.13, up 10.5% from FY16 but slightly below the consensus estimate of $7.17.