Home Depot | $HD Stock | Shares Spike Up After Crushing Q4 Estimates

Home Depot

Home Depot (NYSE: HD)



Home Depot Q4 Earnings

On Tuesday morning before the market opened, Home Depot ($HD) announced fourth quarter earnings that crushed analyst estimates and sent shares popping up in the pre-market session. The home improvement retailer announced earnings per share of $1.44 compared to $1.17 for the same period last year and analyst estimates of $1.33. Revenue came in at $22.2 billion compared to $20.9 for the same period last year while analysts were looking for $21.8 billion.

Same store sales rose 6.3% and the company also announced a $15 billion share buyback program along with an increase dividend to 89 cents, up from 69 cents.

Currently analyst have an average price target of $148.55 but that will likely be raised as analyst readjust their valuations for the company following their strong fourth quarter results.


HD Technicals

Home Depot

Looking at the 5-minute chart above you will notice that shares are getting a nice pop with pre-market highs currently at $146.96 after closing Friday at $143.00, marking a 2.7% jump in value.

Shares are set to open at all time highs with $148 and $150 looking to be the first major levels of resistance. We should see some support come in at $144.75, $143.12 and at the 20-day moving average currently at $139.03 If you are looking to trade HD today make sure to trade off important levels as it will have increased volatility and volume through the day and over the next couple of days.


CEO Comments

“Our focus on providing localized and innovative product selection, improving the interconnected customer experience, and driving productivity resulted in record sales and net earnings for 2016,” said Craig Menear, chairman, CEO and president. “Our associates responded to a healthy housing market and strong customer demand, and I’d like to thank them for their execution, hard work and continued dedication to our customers.”


Company Profile

Home Depot, Inc. is a home improvement retailer that sells building materials and home improvement products. It operates The Home Depot stores, which provides full-service, warehouse-style stores that sells a wide assortment of building materials, home improvement products and lawn and garden products and provide a number of services. The company offers national installation services through pre-screened independent contractors for products ranging from floors to roofs, windows to water heaters, and kitchen cabinets to vinyl siding. Its retail stores offer professional customers, including repair and remodel contractors, special services and support to make them more successful on the job site. The company serves professional remodelers, general contractors, repairmen, small business owners, and tradesmen. Home Depot was founded by Bernard Marcus, Arthur M. Blank, Kenneth Gerald Langone and Pat Farrah on June 29, 1978 and is headquartered at Atlanta, GA. –MarketWatch