Home Depot slides after cutting its full-year profit outlook for the 2nd time
- Home Depot reported third-quarter 2019 earnings Tuesday that missed analyst expectations.
- Shares fell as much as 7.5% in early trading on the news.
- The company also lowered its full-year 2019 outlook for the second time this year, saying business investments haven't benefited sales yet.
- Watch Home Depot trade live on Markets Insider.
Shares of Home Depot fell as much as 7.5% in early trading Tuesday after the company reported third-quarter earnings results that missed Wall Street's expectations.Here's what the company reported versus what analysts at Bloomberg expected: Advertisement
- Earnings per share: $2.53 reported versus $2.53 (expected)
- Revenue: $27.22 billion reported versus $27.72 billion (expected)
- Same-store sales: +3.6% reported versus 4.6% (expected)
Home Depot now expects full-year comparable sales to grow about 3.5%, where it previously had forecast about 4%. The company also trimmed its revenue outlook to growth of 1.8% from 2.3%, but maintained its expectation of earnings per share of about $10.03."Sales were below our expectations driven by the timing of certain benefits associated with our One Home Depot strategic investments," said Craig Menear, CEO of Home Depot, in a press release.
He continued: "We are largely on track with these investments and have seen positive results, but some of the benefits anticipated for fiscal 2019 will take longer to realize than our initial assumptions."It's the second time that Home Depot has trimmed its full-year outlook recently. In its second-quarter earnings release, the company lowered its guidance, citing continued lumber-price deflation and potential tariff impacts. Shares of home-improvement competitor Lowe's, which is set to report earnings Wednesday, fell as much as 2.2% in early trading Tuesday. Advertisement
Home Depot hit a 52-week high of $239.31 during the day on Monday. It has a consensus target price of $235.70 and 19 "buy" ratings, 14 "hold" ratings, and two "sell" ratings, according to Bloomberg data.
Home Depot is up 39% this year through Monday's close.Advertisement
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