Home Depot’s Solid Quarter

Five years ago, a reader asked me which I liked better, Lowe’s (LOW) or Home Depot (HD). I said it was close, but gave a slight edge to Home Depot. In retrospect, that seems to be largely correct. Both stocks have done well, while Home Depot has done a little bit better.

big02242015

Shares of Home Depot are doing very well today, up about 4% as I write this. The company just delivered a solid earnings report; $1 per share in EPS which was 11 cents better than expectations. They raised their quarterly dividend from 47 to 59 cents per share.

Profit beat expectations as an improving job market encouraged Americans to spend more on renovations. Earlier on Tuesday, luxury home builder Toll Brothers Inc (TOL.N) reported a higher-than-expected quarterly profit and raised the low end of its full-year home delivery forecast as housing demand strengthened.

U.S. homebuilders remain upbeat about market conditions, according to a survey by the National Association of Home Builders published last week.

Home Depot also said it would buy back $18 billion of its shares, replacing a $17 billion buyback authorized in 2013.

The company said it expects full-year 2015 earnings of $5.11 to $5.17 per share, after accounting for share buybacks and sales growth of 3.5 to 4.7 percent.

Like so many other companies, Home Depot also warned about the negative impact of the strong dollar. This is getting to be a major issue for companies.

Posted by on February 24th, 2015 at 2:49 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.