Home Depot Has Down Roughly 5% Due to the Company's Miss and Weaker Expectations.
By USA Mega News
In pre-market trade on Tuesday, shares of the home improvement retailing giant Home Depot (NYSE: HD) dropped 3.6%.
Home Depot's stock price went down because of a miss in the current quarter and lower forecasts for the whole year.
Sales for the first quarter dropped 4.2% to $37.3 billion, which was less than the expectation on Wall Street, which was $38.6 billion.
EPS dropped from $4.09 per share last year to $3.82 per share, which was less than the average of $3.87.
Home Depot thinks that sales and similar sales will go down between 2% and 5% in fiscal 2023. The company's sales were the same all year.
Compared to fiscal 2022, they expect the diluted earnings per share to drop by between 7% and 13%.
The company had thought that the percentage drop in diluted earnings per share would be in the mid-single digits.
Richard McPhail, executive vice president, and chief financial officer, said, "We are updating our guidance to reflect a range of possible outcomes."
Home Depot said that falling lumber prices and cold weather also hurt sales in the first quarter of the fiscal year.
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