Home Depot Inc. (HD) announced its third-quarter earnings on Tuesday, exceeding expectations. However, the home-improvement retailer noted a decrease in engagement in certain big-ticket categories and an increase in smaller projects.
Financial Performance
For the quarter, Home Depot achieved a net income of $3.8 billion, equivalent to $3.81 per share. This is a slight decline compared to the previous year's figures of $4.3 billion ($4.24 per share). The company's sales also experienced a 3% decrease, reaching $37.7 billion, surpassing the FactSet consensus of $37.6 billion in revenue.
Same-Store Sales
Home Depot observed a decline of 3.1% in same-store sales. However, this decline was lower than the 3.6% expected by FactSet analysts.
Guidance for the Full Year
The company has revised its previous guidance for the full year. Home Depot now anticipates a 9% to 11% decrease in EPS (earnings per share), along with a 3% to 4% decline in both sales and same-store sales.
Stock Performance
Shares of Home Depot showed a 0.5% increase in premarket trading following the announcement. However, the stock has seen a 9% decrease year-to-date, in contrast to the S&P 500's 15% gain.
Overall, Home Depot Inc. remains optimistic despite certain challenges it faces in specific categories. The company is focused on delivering exceptional performance and meeting consumer demands in the changing market landscape.
PREVIOUS POST
Asia-Pacific Stocks Mostly Rise as Japanese Shares Climb
NEXT POST
