Home Depot tops estimates as sales surge 25%, but shares fall on worries pandemic gains won’t last
Home Depot‘s fourth-quarter earnings surged past investors’ expectations, as consumers poured more money into home improvement due to the pandemic and strength of the real estate market.
Shares were down more than 2% in premarket trading, after the company did not provide an outlook for the year in its earnings report Tuesday.
Chief Financial Officer Richard McPhail said the retailer is not sure how long the pandemic will last and how that may influence consumer spending. He said if demand from the second half of last year continues, it would lead to slightly positive same-store sales growth and an operating margin of at least 14% this year.
Here’s what the company reported for the quarter ended Jan. 31 compared with what Wall Street was expecting, based on a survey of analysts by…