Recession Fears? Home Depot Misses Sales Target, Drops Outlook
According to Fox Business and CNBC reports, Home Depot’s outlook is lowering after missing analysts sales estimates. One report suggests that the revelation took a toll on the market as a whole, reducing today’s outlook from small gains to flat trading.
The miss was pretty small, just $150 million short of the estimated $30.99 billion target (short 0.5%). The biggest blame comes from lumber prices deflation and ongoing worries of tariff impacts.
The good news is that same store sales are up 3% over last year. Home Depot also beat their EPS (earnings per share) target with $3.17 over an expected $3.08.
What Should We Make of It?
Once you get through the all the geek-speak that comes with the stock market, what we’re seeing is mixed results. The target Home Depot missed are “analyst estimates” and for my money, hitting higher than the earnings-per-share estimate is a bigger deal.
If you own Home Depot stock, there’s no reason to panic or worry.
At the time of writing, Home Depot stock was trading at $217.00 per share, $3.50 up from its Tuesday morning opening. The Down Jones Industrial Average was down 78.60 to 26,057.19.