Home Depot (HD) Beats Expectations As Demand For Home Renovation Picked Up

Home Depot (NYSE: HD) beat analysts’ estimates to report Q4 sales of $14.57 billion. Q4 net income was $342 million (20 cents per share), compared to a loss of $54 million (3 cents per share) in Q4 2008. Adjusted profit was 24 cents per share, defying analysts’ average estimate of 17 cents per share.

The company forecasts 2010 GAAP EPS of $1.79 versus the analysts’ estimate of $1.55, and a 2.5% increase in total and same-store sales this fiscal year. Home Depot’s shares rose 0.6% to $30.50 in morning trading.

The company has benefited from a slower expansion strategy, improvements in the supply chain and cost cutting measures.