Home Depot (NYSE: HD) 4Q18 Results: Misses on Revenues and Comps, Guides Below Consensus, Housing Starts and Permits Down

Executive Summary

• Home Depot reported 4Q18 EPS of $2.09, up 37.2% and beating the $2.16 consensus estimate (excluding a $0.16 charge.) Revenues were $26.49 billion, slightly below consensus.
• Comps were up 3.2%, missing the 4.5% consensus estimate. US comps were up 3.7%.
• The company guided for 2019 comp growth of 5.0% and sales growth of 3.3%, in line with consensus, and EPS of $10.03, below the $10.26 consensus estimate.
• Separately, the Commerce Department announced that December housing starts fell 11.2% year over year on a seasonally adjusted basis. Housing permits increased 0.3% year over year.