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.