Home Depot posted first-quarter results on Tuesday, outperforming analysts, but missed out on top of what the company called "a slow start to the spring season".
Home Depot shares fell more than 2 percent in pre-IPO trading.
So the company has compared to what Wall Street expected:
- Profit: $ 2.08 per share, compared to $ 2.05 per share from Thomson Reuters
- $ 24.95 billion compared to $ 25 million $ 1
- same-store sales growth 4.2 percent vs. 5.4 percent from Thomson Reuters
In the quarter ended April 29, Home Depot said that net income was $ 2.01 billion or $ 1.67 per share to $ 2.40 billion or $ 2.08 per share increased. Analysts have expected the company to earn $ 2.05 per share.
While revenue increased 4.4 percent year-over-year to $ 24.95 billion, it was below the $ 25.15 billion surveyed by Thomson Reuters. meanwhile, 4.2 percent grew, far less than 5.4 percent expected.
Analysts from Jefferies last week lowered their estimates for the first quarter for Home Depot, citing the bad spring weather. Jefferies assumes buyers will relocate their projects into the summer and not give up entirely.
In a broader sense, Home Depot benefits from a strong real estate market and a favorable economic tailwind. The home improvement stores were among the strongest selling retail segments and were partially supported by the recovery required last year following a severe storm.
In a broader sense, Home Depot has expanded its e-commerce strategy, outperforming its rival Lowe in that capacity.
Home Depot said on Tuesday that it supports its earlier forecasts for 2018. It said it expects sales to increase by about 6.5 percent and that same store sales will grow by about 5 percent.
It is said that new rules on revenue recognition will not have a material impact on its financial statements or disclosures. However, it will change what the revenue recognition for its private label credit cards and gift cards looks like.