Categories Retail, U.S. Markets News

Home Depot’s stock sees a dip after providing preliminary FY2020 guidance

Shares of The Home Depot (NYSE: HD) remained down 1.8% in morning hours on Wednesday after the company provided a preliminary outlook for fiscal year 2020 that was lower than what analysts had predicted.

The company reaffirmed its guidance for fiscal year 2019 and continues to expect total sales growth of approx. 1.8% and comparable sales growth of approx. 3.5%. Diluted EPS is expected to grow around 3.1% to $10.03.

Home Depot reports Q3 2019 earnings results

Home Depot provided a preliminary fiscal year 2020 outlook which outlines total sales growth of approx. 3.5-4%. Based on data from CNBC, analysts were expecting sales growth of 4.3%. Comparable sales growth is expected to be approx. 3.5-4%.

The retailer also touched upon its One Home Depot strategy which includes investments in store enhancements, new e-commerce solutions, and delivery options. The company said it was building on its distinct competitive advantages to capitalize on a large and fragmented market opportunity and expand its leadership position for years to come.

For its most recent quarter, Home Depot reported better-than-expected earnings but missed revenue estimates. Net sales rose 3.5% to $27.2 billion while EPS grew 0.8% to $2.53. Comparable sales rose 3.6%.

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