Home Depot sales miss, shares plunge

The home-improvement retailer earned $2.8 billion in the third quarter.

Dow component Home Depot reported third-quarter earnings that topped estimates as revenue fell short, sending shares lower ahead of the opening bell. Rival Lowe's was also lower following the results.

Continue Reading Below

TickerSecurityLastChangeChange %
HDTHE HOME DEPOT INC.214.28+1.28+0.60%
LOWLOWE'S COMPANIES INC.116.28+0.70+0.61%

The home-improvement retailer earned $2.8 billion, or $2.53 per diluted share, as revenue rose 3.5 percent to $27.2 billion. Wall Street analysts surveyed by Refinitiv were expecting $2.52 a share on revenue of $27.53 billion. Comparable sales rose 3.6 percent, missing the 4.8 percent gain that was expected.

“Our third quarter results reflected broad-based growth across our business, yet sales were below our expectations driven by the timing of certain benefits associated with our One Home Depot strategic investments," chairman, CEO and president Craig Menear said in the earnings release.

CO-FOUNDER 'PROUD' OF HOME DEPOT EMPLOYEES LIVING OUT THEIR AMERICAN DREAM

"We are largely on track with these investments and have seen positive results, but some of the benefits anticipated for fiscal 2019 will take longer to realize than our initial assumptions," Menear continued.

Vicente Aguiar loads garage door trims into his pickup truck outside a Home Depot in Hialeah, Fla. (AP Photo/Alan Diaz, File)

Looking ahead, Home Depot sees fiscal year 2019 sales growth of 1.8 percent and comparable sales growth of 3.5 percent, down from previous guidance of up 2.3 percent and up 4 percent, respectively.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Home Depot shares are up 39 percent year-to-date while the S&P 500 is up 24.5 percent.

READ MORE ON FOX BUSINESS BY CLICKING HERE