Home Depot: Forecast topped + more dividend – but the share is shaky

Profit jump, sales increase and dividend increase: Home Depot has delivered with its pre-market figures. However, the share price initially appears weak. This means that a chart-technically sensitive mark is now in focus.

The US home improvement group The Home Depot reported an increase in profits in the fourth quarter, exceeding analysts' expectations. The company reported net profits of $2.997 billion, or $3.02 per share, compared to $2.801 billion, or $2.82 per share, in the same period last year.

Adjusted for special items, earnings per share were even $3.13, above analyst estimates of $3.04 per share. Home Depot also saw strong growth in sales: Revenues rose by 14.1 percent year-on-year to $39.704 billion.

Home Depot has also announced an increase in its dividend. The quarterly payout will rise from $2.25 to $2.30 per share. The next payment date is March 27. All shareholders who hold the stock on March 13 are entitled to receive the dividend.

The company is braving the challenges of the US real estate market and showing that demand for DIY and construction products remains high. Investors are not satisfied with their initial reaction, however. Although there is no sell-off of around ten percent like Walmart recently saw, there is still a small loss in pre-market trading. The share is therefore testing an important horizontal support. If this falls, things will become uncomfortable from a technical chart perspective. Conversely, however, a countermovement upwards could start from here.