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Home Depot Beats Q4 Estimates, Raises Dividend as Housing Market Recovery Gains Traction

Home Depot reported stronger-than-expected fiscal fourth-quarter results on Tuesday, posting earnings per share of $2.72 against the $2.54 consensus estimate and revenue of $38.2 billion that narrowly topped forecasts. The home improvement retailer also raised its quarterly dividend to $2.33 per share and reported a 0.4% increase in comparable sales, offering investors an early signal that the U.S. housing market recovery is providing a modest but real tailwind to big-ticket home improvement spending.

Mortgage Bond Purchases and Housing Stocks Rally Lift Market Sentiment

Housing market stocks rallied on news that the government will purchase mortgage bonds to reduce rates, boosting builder sentiment and related equities.