Home Depot beats on earnings despite revenue drop

US retailer Home Depot beat expectations on the Street with its fourth-quarter figures on Tuesday, with chief executive Craig Menear crediting its significant investments for the strong performance.

Earnings per shares came in at $2.28 each, well ahead of the $2.10 expected by analysts, and while revenues dropped 2.7%, they still came in just ahead of expectations of $25.76bn at $25.78bn.

Same-store sales were up 5.2%, ahead of the 4.8% anticipated and the Atlanta-based firm also increased its dividend by 10% and backed its prior forecast for the year.

Menear said Home Depot had "more conviction than ever" that its strategic initiatives were creating a value proposition that was unique to the marketplace and would extend its leadership position "for years to come".

As of 1320 GMT, Home Depot shares were up 2.65% in pre-market at $246.05 each.