Shares of Home Depot (NYSE: HD) slipped in pre-market trading on Tuesday after the home improvement retailer issued a muted outlook for FY23. Management now expects sales and comparable sales to be flat year-over-year in FY23 with diluted EPS expected to decline in “mid-single digits” percentage.
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The company reported earnings of $3.30 in Q4 versus $3.21 in the same period last year and beat analysts’ consensus estimate of $3.28 per share.
However, sales increased by only 0.3% year-over-year to $35.8 billion but fell short of analysts’ expectations of $35.9 billion. Comparable sales also declined by 0.3% year-over-year.
Even with HD’s mixed Q4 earnings, the retailer hiked its quarterly dividend by 10% to $2.09 per share which equates to an annual dividend of $8.36 per share. The dividend will be payable on March 23 to shareholders of record as on March 9, 2023.
Overall, Wall Street is cautiously optimistic about HD stock with a Moderate Buy consensus rating based on eight Buys, four Holds, and one Sell.
