Home Depot (NYSE: HD) shares tumbled Tuesday after the company once again cut its 2019 forecast, and also reported same-store sales well below estimates.
The company said revenue, which also missed analysts’ targets, was hurt by investments it is making in its business. Earnings came in a penny better than expected.
Shares of Home Depot were down $11.27, or 4.7% in early Tuesday trading to $227.58
Home Depot said earnings fell to $2.8 billion, or $2.53 per share, from $2.9 billion, or $2.51 per share, a year ago. Analysts had expected the company to earn $2.52 per share.
Sales increased 3.5% to $27.22 billion, just shy of analyst estimates of $27.53 billion.
Sales at U.S. stores open at least 12 months rose 3.8%. Analysts were expecting a 4.7% gain.
Home Depot also cut its sales forecast for the year. It said it now expects sales to grow by 1.8%, down from a prior estimate of 2.3%. The company also cut its same-store sales forecast for the fiscal year. It now expects growth of 3.5%, compared with an earlier forecast of 4%.
Home Depot said its average customer ticket in the third quarter was $66.36, which was higher than it saw in the year ago quarter. Sales per square foot also rose to $449.17 from the year-ago period.
Last quarter, the Atlanta-based company trimmed its full-year revenue outlook, partially due to potential tariff impacts.
Related Stories
