Home Depot (HD)'s stock rose slightly on Friday as the company renewed its $15 billion share buyback program, remained unchanged, and appointed new CEO Ted Decker to the group's chairman following better-than-expected second-quarter earnings earlier this week.
Home Depot announced that it would pay a $1.90 per share quarterly dividend, which matched its first quarter payout, while also continuing to pay dividends for 142 consecutive quarters. The company also approved a$15 billion buyback program, which replaced a similar one set in 2017.
Decker, a 22-year veteran of the company who was named group CEO earlier this year, will take the place of retiring chairman Craig Menear on September 30.
"We have learned from Ted's tenure as CEO and board member, and we look forward to continuing to work with him as chair," said lead director Greg Brenneman. "On behalf of the Board of Directors, I want to thank Craig for his unwavering dedication to The Home Depot's values and his visionary leadership, which provided a solid foundation for the company's long-term success."
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Home Depot stock was 0.03% higher in pre-market trading on Friday, indicating a opening bell price of $325.32.
Home Depot reiterated its full-year profit prediction after topping Street's expectations for its July quarter earnings as it saw an unexpected increase in home improvement demand amid a weakening housing market.
Even as the overall number of transactions fell 3%, group revenues increased by 6% to $43.8 billion, bolstered by a 5.8% increase in same-store sales and a 9.1% increase in average tickets. That boosted company earnings by 11.5 percent from last year, putting it in a fifth-place position.
Home Depot stated that it expects'mid single digit' earnings growth in 2022, up from its previous projection of 'low single digit' earnings rise, and comparable sales growth of around 3% and operating margins of around 15.4%.
While the business performed admirably throughout the first half of the year, we are navigating a different environment. "We can't predict how the changing macroeconomic backdrop will affect our customer going forward,"Decker told investors on a conference call earlier this week.
"Despite near-term uncertainty, we believe that demand for home renovation remains strong in the long run, and that we are well-positioned to leverage our distinct competitive advantages to exploit compelling growth opportunities in our region."