Ignore the headlines of an earnings and revenue beat. The news was a downer, as we expected.
Q4 2023 Highlights:
- Sales: $34.8 billion (-2.9% from Q4 2022).
- Comparable sales: -3.5% (-4.0% in the U.S.).
- Net earnings: $2.8 billion, or $2.82 per diluted share (-14.5% from $3.30 in Q4 2022).
Fiscal 2023 Overview:
- Sales: $152.7 billion (-3.0% from fiscal 2022).
- Comparable sales: -3.2% (-3.5% in the U.S.).
- Net earnings: $15.1 billion, or $15.11 per diluted share (-9.5% from fiscal 2022).
Dividend Update:
- The quarterly dividend increased by +7.7% to $2.25 per share, payable on March 21, 2024.
Fiscal 2024 Guidance:
- Total sales growth: +1.0%, including the 53rd week (+$2.3 billion).
- Comparable sales are expected to decline by -1.0%.
- About 12 new stores are planned.
- Gross margin: 33.9%.
- Operating margin: 14.1%.
- Tax rate: 24.5%.
- Net interest expense: $1.8 billion.
- 53-week diluted earnings-per-share-percent growth: +1.0% (+$0.30 contribution from the 53rd week).
Mavericks should understand HD is an over-priced momentum play and due for a correction.
