Home Depot drops after earnings miss

  • Home Depot missed on both the top and bottom lines.
  • The company’s same-store sales grew slower than expected.
  • Full-year profit guidance also fell short of estimates.
  • Watch Home Depot trade live.

Home Depot was down 2.22% to $US185.76 a share after early Tuesday reporting disappointing fourth-quarter earnings and delivering full-year profit guidance that fell short of expectations.

The home-improvement retailer said it earned $US2.09 a share, missing the $US2.16 that was expected, according to Bloomberg data. Home Depot generated sales of $US26.5 billion, just shy of the $US26.6 billion that analysts were looking for.

Meanwhile, the company reported same-store sales grew 3.2% year-over-year, missing the 4.5% growth that was expected.

“We achieved record sales and net earnings in fiscal 2018, while making great progress on the strategic investments we laid out in December of 2017,” said CEO Craig Menear in a press release.

“We focused on enhancing the interconnected retail experience for our customers, providing localised and innovative product, and delivering best in class productivity.”

Looking ahead, the company sees 2019 full-year earnings of $US10.03 a share versus the $US10.26 that was expected.

Home Depot was up 7% this year through Monday.

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