Home Depot falls as earnings miss estimates amid ongoing consumer uncertainty
Investing.com -- Home Depot (NYSE:HD) reported third-quarter adjusted earnings that fell short of analyst expectations on Tuesday, despite posting revenue that exceeded forecasts. The world’s largest home improvement retailer saw its stock decline 1.8% following the release.
The company reported adjusted earnings per share of $3.74 for the third quarter, missing the analyst estimate of $3.84. Revenue came in at $41.4 billion, slightly above the consensus estimate of $41.18 billion and up 2.8% YoY. The results include approximately $900 million from the recent acquisition of GMS Inc., representing about eight weeks of sales in the quarter.
Comparable sales increased just 0.2% overall and 0.1% in the U.S., reflecting continued pressure in the housing market and consumer spending.
"Our results missed our expectations primarily due to the lack of storms in the third quarter, which resulted in greater than expected pressure in certain categories," said Ted Decker, chair, president and CEO. "Additionally, while underlying demand in the business remained relatively stable sequentially, an expected increase in demand in the third quarter did not materialize."
Home Depot updated its fiscal 2025 guidance to reflect third-quarter performance and continued challenges. The company now expects total sales growth of approximately 3.0%, with comparable sales growth to be "slightly positive" for the comparable 52-week period. Adjusted diluted earnings-per-share are projected to decline approximately 5.0% from $15.24 in fiscal 2024.
The retailer cited ongoing consumer uncertainty and housing pressure as factors impacting home improvement demand, though Decker noted, "Our teams are continuing to execute at a high level and we believe we are growing our market share."
