Home Depot (HD.US) shares are falling almost 4% after reporting Q3 earnings at $3.74 per share, slightly below Bloomberg analysts consensus of $3.84 per share and down YoY from $3.78 per share a year ago, after also weaker than expected Q2 earnings report. Over the last four quarters, the company has surpassed consensus EPS estimates just once.
- The leading US furniture and home equipment company posted revenues of $41.35 billion for the quarter, only slightly above $41 billion market's estimate. The stock is down 10% since the beginning of the year and almost 25% since the all-time high.
- What's even more important, the company cuts its full-year outlook, citing weakening US consumers putting off home improvement projects amid historically high prices of services, goods and rising uncertainty around the state of the economy and employment.
- The US housing market remains sluggish, and Home Depot expects same-store sales for the full year to be "slightly positive," whereas it had previously expected a 1% increase for 2025. Full-year profits are also now expected to fall more sharply, with adjusted earnings per share forecast to drop by 5%, more than the 2% decline the company projected this summer, after Q2 report.
Same-store sales rose 0.2% overall and just 0.1% in the US. The Street expected same-store sales to rise closer to 1.3% in the third quarter, so the number is really weak. For the broad stock market those earnings are the signal that the state of the US economy is at least mixed now, no more 'solid' nor 'robust' as historically high prices and still 'expensive' credit pressure demand even if payrolls are YoY higher.
Source: xStation5
US Open: Wall Street indices under continued selling pressure 📌Technology stocks slide
Clouflare shares down in pre-market amid internet outage📌
AI Battle: Huawei vs Nvidia
Morning Wrap (18.11.2025)
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
