Shoppers Arrive at Home Depot Inc. Store in Louisville, Kentucky, USA, Monday, February 25, 2019.
Luke Sharrett | Bloomberg | Getty Images
Home Depot reported quarterly revenue that exceeded analysts' expectations, but sales fell short.
Shares in Home Depot were more than 5% in premarket trading.
This is what the company reported compared to what Wall Street expected, based on a survey of Refinitive Analysts:
- Earnings per share: $ 2.53, adjusted, against $ 2.52 expected
- Revenue: $ $ 27.22 vs. $ 27.53 Billion Expected
- Same Store Sales Growth Global: 3.6% vs. 4.7% Expected
Home Depot said revenues fell to $ 2.8 billion, or 2.53 dollars per share, from $ 2.9 billion, or $ 2.51
Sales rose 3.5% to $ 27.22 billion, just shy of analyst estimates of $ 27.53 billion.
Last quarter, the Atlanta-based company trimmed its revenue outlook for the entire year, in part due to potential tariff effects. It is estimated that the December 15 tariff rates and the 25% tariffs already in place could increase sales costs by around $ 2 billion, or about 2% of annual sales.
Home Depot CEO Craig Menear also cited timber deflation for lower sales forecast.
Rival Lowe's is scheduled to report on the revenue before Wednesday. Lowe's CEO Marvin Ellison, who stepped into that role in July 2018, has focused much of his attention on the professional entrepreneur. In the second quarter of 2018, Lowe's said the company added 35,000 new customers, but did not disclose the total number of customers for competitive reasons.
Shares of Home Depot hit a 52-week high Monday of $ 239.31. The stock, valued at $ 262 billion, has risen 39% from Monday's close. Rival Lowe, which has a market value of nearly $ 89 billion, has had 24% so far this year.
This story is evolving. Please check for updates.
Correction: An earlier version of this story incorrectly predicts global sales in the same store. Analysts predicted a gain of 4.7%.