Home Depot beats Wall Street's projections for the fourth quarter even as shoppers remain cautious

Core Insights - Home Depot's fourth-quarter performance exceeded Wall Street expectations despite a cautious consumer environment and a weak housing market [1] - The company reported earnings of $2.57 billion, or $2.58 per share, surpassing analyst projections of $2.53 per share [1] - Revenue for the quarter was $38.2 billion, down from $39.7 billion a year earlier, but above the expected $38.09 billion [1] Financial Performance - Earnings per share adjusted for one-time charges were $2.72, compared to $3.02 per share a year earlier [1] - The extra week in fiscal 2024 contributed approximately $0.30 per share to the previous year's earnings [1] - Comparable store sales increased by 0.4%, with U.S. comparable store sales rising by 0.3% [1] Consumer Behavior - Customer transactions decreased by 1.6% in the quarter, while the average spending per transaction rose to $91.28 from $89.11 a year earlier [1] - The housing market slump has led to reduced spending, particularly affecting Home Depot, as consumers are more focused on smaller projects rather than large-scale renovations [1][1] - Consumer confidence hit its lowest level since 2014 in January, contributing to cautious spending behavior [1] Future Outlook - For fiscal 2026, Home Depot anticipates adjusted earnings to be flat to up 4% from fiscal 2025's $14.69 per share [1] - The company expects total sales growth of approximately 2.5% to 4.5% and comparable sales growth to be flat to up 2% [1]