Shares of Home Depot fell on Tuesday after the company once again lowered its forecast for 2019, and also reported that sales in the same store are significantly lower than estimates.
The company said that earnings that also did not reach the goals of analysts were affected by the investments it makes in its business. Earnings came on a penny better than expected.
Home Depot shares were down about 5% at the premarket.
Here's what the company said compared to what Wall Street had expected, based on a Refinitiv analyst survey:
- Earnings per share: $ 2.53, adjusted for $ 2.52
- Revenue: $ 27.22 billion against the expected $ 27.53 billion
- Global store sales growth: 3.6% versus 4.7% expected
Home Depot reported that annual earnings fell to $ 2.8 billion, or $ 2.53 per share, from $ 2.9 billion, or $ 2.51 per share. Analysts had expected the company to earn $ 2.52 per share.
Sales rose 3.5% to $ 27.22 billion, which analysts say is $ 27.53 billion.
Sales in US stores open for at least 12 months were up 3.8%. Analysts had expected an increase of 4.7%.
Home Depot also lowered its sales forecast for the year. He said he now expects sales to grow by 1.8%, compared with a previous estimate of 2.3%. The company also lowered its sales forecast for the fiscal year in the same store. An increase of 3.5% is currently expected compared to an earlier forecast of 4%.
An Atlanta-based company cut its annual revenue forecast last quarter, in part due to potential tariff impact. According to her estimates, December 15 tariffs and already introduced 25% tariffs can increase the cost of sales by about $ 2 billion, or about 2% of annual sales.
Home Depot CEO Craig Mener also cited ongoing lumber deflation to lower sales forecasts.
Rival Lowe must report on his earnings before Wednesday’s call. Shares of Home Depot hit a 52-week high on Monday at $ 239.31. Shares, valued at $ 262 billion, rose 39% as of Monday's close. Rival Lowe & # 39; s, with a market value of nearly $ 89 billion, has grown 24% since the start of the year.
This story is evolving. Please stay tuned.
Correction: an earlier version of this story did not meet the forecast of global sales in one store. Analysts had forecast an increase of 4.7%.