Retail
Home Depot Sets $15 Billion Buyback Plan, Confirms 2017 Guidance
Published:
Last Updated:
Home improvement giant Home Depot Inc. (NYSE: HD) on Wednesday announced a fresh stock buyback program of $15 billion to replace its existing program, confirmed its already announced fiscal year 2017 guidance and revealed financial targets for fiscal year 2020.
The company reiterated the guidance it provided when it reported third-quarter earnings last month. At that time, Home Depot raised its sales guidance from a prior estimate for an increase of 5.3% year over year to an increase of 6.3%. Same-store sales guidance was raised from an increase of 5.5% to 6.5%. Home Depot also lifted diluted EPS guidance from a prior estimate of $7.29 to $7.36, up 14%, including the impact of $8 billion in share buybacks for the 2017 fiscal year.
CEO Craig Menear said:
The retail landscape is changing at unprecedented rates and we plan to invest for the future to address the evolving needs of our customers. We will accelerate our investments, while continuing to focus on delivering the value our shareholders expect from The Home Depot.
The company’s 2020 targets include:
Home Depot also plans to improve its online sales and services offerings, making them more connected to the company’s physical stores. That will cost money, of course and that will have an effect on margin growth. The good news is that, if done right, the improvements will better position the company for longer term growth.
Shares traded down about 1.4% late Wednesday morning, at $180.25 in a 52-week range of $128.75 to $186.31. The stock’s 12-month consensus price target is $181.47.
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.