Home Depot reported fiscal second-quarter results that fell short of Wall Street expectations but were broadly in line with the company’s own forecast. Revenue rose 5% from a year earlier to $45.28 billion, missing analysts’ estimate of roughly $45.4 billion. Earnings came in at $4.68 a share versus the $4.72 consensus, while net income totaled $4.6 billion. Comparable sales increased 1.0% worldwide and 1.4% in the United States, a modest pickup that the home-improvement chain said reflected consumers’ continued focus on smaller projects amid higher borrowing costs. Average ticket size grew 1.2% to about $90 even as customer transactions dipped 0.9%. Chief Financial Officer Richard McPhail cautioned that recently enacted tariffs on imported goods could lead to “some modest price movement,” reversing earlier expectations that the company would hold prices steady. Even so, Home Depot reaffirmed its full-year outlook for roughly 2.8% sales growth and a 2% decline in adjusted earnings per share, citing momentum that began in the back half of last year. Investors looked past the earnings miss, sending the shares up almost 4% in early New York trading and accounting for about half of the Dow Jones Industrial Average’s 0.5% advance. The stock reaction suggests confidence in management’s guidance and early signs that a prolonged slowdown in U.S. home-improvement spending may be easing.
Home Depot Misses Across The Board But Stock Jumps On Sticky Guidance https://t.co/14X32vSuK2
Home Depot miss this morning a good example of how "real" economy earnings continue to lag. AI+Financials alone can't deliver the double-digit earnings growth expected ahead. h/t @takis2910 https://t.co/ZdnaqyPaWi
Home Depot Warns Of Price Changes From Tariffs After Missing Quarterly Earnings https://t.co/eWeglS4o6W https://t.co/9aTQRWAIli