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Home Depot cuts earnings outlook as home improvement demand falls short of expectations
Home Depot now expects a 5% decline in adjusted earnings per share due to weaker home improvement demand and lower storm-related sales, CFO Richard McPhail said.
- On Tuesday, the Home Depot cut its full-year profit forecast after missing Wall Street estimates for the fiscal quarter that ended Nov. 2, with adjusted EPS of $3.74 versus $3.84 expected and revenue of $41.4 billion versus $41.11 billion expected.
- Executives blamed unusually low storm activity and softer project demand as homeowners' prolonged `deferral mindset` amid higher mortgage costs reduced big renovation projects.
- Adjusted EPS of $3.74 and revenue of $41.35 billion missed expectations, while net income for the three-month period that ended Nov. 2 fell to $3.60 billion.
- Home Depot now expects full-year adjusted EPS to decline by about 5%, including $2 billion from GMS, and is shifting strategy toward contractors, roofers and other professionals after two pro-related purchases.
- Shares are down about 8% year-to-date, trailing the S&P 500's 13% gains, while management said tariffs raised costs and expects full-year sales to climb about 3%.
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Home Depot Stock Falls After the Company Cut Its Earnings Outlook. Here's What Investors Need to Know.
Key PointsHome Depot published its fiscal Q3 report this morning, posting an earnings miss despite recording a sales beat in the period. The home-improvement retailer's same-store sales increased just 0.1% year over year last quarter. Home Depot lowered its full-year earnings target and issued new guidance suggesting that same-store-growth may be weaker than previously anticipated. 10 stocks we like better than Home Depot › Home Depot (NYSE: HD)…
·Alexandria, United States
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Home Depot shares tumble after chain slashes outlook, warns of ‘consumer uncertainty’
Home Depot forecast a bigger drop in full-year profit after missing Wall Street estimates for quarterly earnings on Tuesday, as tariff-driven economic uncertainty dampened demand for big-ticket renovations and do-it-yourself projects.
·New York, United States
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Coverage Details
Total News Sources22
Leaning Left6Leaning Right2Center7Last UpdatedBias Distribution47% Center
Bias Distribution
- 47% of the sources are Center
47% Center
L 40%
C 47%
13%
Factuality
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