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“Home Depot Shares Fall After Earnings Miss and Lowered Full-Year Guidance” 🚨🚨🚨

Home Depot HD $344.40 (-1.12%) traded lower on Tuesday after the home improvement retailer posted quarterly results that fell short of Wall Street expectations and sharply reduced its full-year outlook.

For Q3, the company reported adjusted earnings per share of $3.74, missing the $3.84 analysts surveyed by FactSet were expecting. While revenue came in slightly stronger — $41.4 billion versus the $41.1 billion forecast — other key metrics disappointed. Comparable sales grew just 0.2%, well below the 1.3% analysts projected, signaling continued weakness in consumer spending on home renovation projects.

The company also issued a more pessimistic full-year forecast, saying adjusted earnings will now decline 5% year over year, a steeper drop than its previous projection of a 2% decline. The guidance cut added to investor concerns that demand in the home improvement sector remains sluggish, even as inflation eases and borrowing costs gradually decline.

CEO Ted Decker noted that the quarter lacked the weather-related events that typically drive spikes in repair and recovery spending. But he also acknowledged that lower interest rates have not yet translated into a rebound in consumer demand, especially in big-ticket discretionary categories like flooring, appliances, and renovation materials.

Shares of Home Depot were down about 3.5% in premarket trading as of 7:25 a.m. ET, extending a difficult year for a stock often seen as a barometer of broader economic health. With Tuesday’s drop, Home Depot has now fallen roughly 12% year to date, underperforming the broader market as consumers remain cautious and home turnover stays near historic lows.