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HD Stock Drops 8.85%, Home Depot Reports Q4 and 2021 Results that Fell Short of Wall Street’s Expectations

UTC by Steve Muchoki · 2 min read
HD Stock Drops 8.85%, Home Depot Reports Q4 and 2021 Results that Fell Short of Wall Street’s Expectations
Photo: Depositphotos

During the fourth quarter, Home Depot reported earnings of $3.21 per share and announced a 15% dividend increase.

The stock of the home improvement retailer Home Depot Inc (NYSE: HD) fell as much as 8.6 percent on Tuesday. However, the broader market recorded a sell-off yesterday. Nevertheless, the company reported its fourth quarter and fiscal 2021 that somehow fell short of analysts’ expectations.

During the fourth quarter, Home Depot reported earnings of $3.21 per share and announced a 15% dividend increase. Additionally, the company noted that sales for the fourth quarter came in at $35.7 billion, a 10.7 percent rise from the fourth quarter of fiscal 2020. Comparable sales for the fourth quarter increased 8.1 percent, whereas comparable sales in the United States increased by 7.6 percent. Net earnings for the fourth quarter came in at $3.4 billion.

As for the whole fiscal year 2021, sales totaled $151.2 billion, a 14.4 percent increase from fiscal 2020. Additionally, the company noted that comparable sales for fiscal 2021 increased 11.4 percent, whereas comparable sales in the United States increased by 10.7 percent.

Notably, net earnings for fiscal 2021 came in at  $16.4 billion, which corresponds to  $15.53 per diluted share.

“Fiscal 2021 was another record year for The Home Depot. We achieved a milestone of over $150 billion in sales,” said Craig Menear, chairman, and CEO. “Our ability to grow the business by over $40 billion in the last two years is a testament to investments we have made in the business, our ability to execute with agility, and our associates’ relentless focus on our customers. I would like to thank all of our associates, as well as our supplier partners, for their hard work and dedication to serving our customers, communities, and each other.”

Home Depot Stock and Marker Outlook

Home Depot stock traded around $316.92 during Tuesday’s after-hours trading session according to MarketWatch. Over the past year, HD shares have experienced mixed results. Whereby they gained approximately 21.62 percent in the past year.

HD shares are down approximately 23 percent and 11 percent YTD and the last one month respectively through Tuesday.

The company has a market capitalization of approximately $362.22 billion and 1.04 shares outstanding. Having been rated 34 times, HD shares received an average rating of Over.

As for fiscal 2022 guidance, the company expects sales growth to be slightly positive. Additionally, the company forecast its operating margin to remain flat with fiscal 2021

Of note, Home Depot expects a net interest expense of approximately $1.5 billion in 2022.

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Steve Muchoki

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