Home Depot misses revenue expectations for the first time since 2019

Home Depot’s revenue fell short of Wall Street’s estimates in its fiscal fourth-quarter earnings report Tuesday amid a slowdown the home improvement category.

Here’s what Home Depot posted, compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:

•Earnings per share: $3.30 vs. $3.28 expected

•Revenue: $35.83 billion vs. $35.97 billion expected

It’s the first time Home Depot missed Wall Street’s revenue expectations since November 2019, before the Covid pandemic. Shares of the company closed down more than 7% down Tuesday.

In the quarter ended Jan. 29, Home Depot reported $35.83 billion in sales, up 0.3% from the year ago period, which saw $35.72 billion in revenue. The retailer’s reported net income of $3.36 billion, or $3.30 per share, was also 0.3% higher than the year ago period, which was $3.35 billion, or $3.21 per share.

The company attributed that solely to a drop in lumber costs, which had surged in price due to nationwide shortages in fiscal 2021 but are now down about 50% year over year.

https://www.cnbc.com/2023/02/21/home-depot-hd-q4-earnings-2022.html