S&P 500 component Home Depot announced better-than expected first-quarter earnings while revenue came in just below expectations Tuesday. The big box retailer also reaffirmed 2024 guidance. Home Depot stock edged lower Tuesday.
Home Depot Q1 earnings fell 5% to $3.63 per share while sales totaled $36.42 billion, down more than 2% compared to Q1 2023. Analysts expected EPS of $3.60 and revenue coming in at $36.65 billion, according to FactSet.
The home-improvement retailer saw total same-store sales fall 2.8% in the first quarter while same-store sales in the U.S. dropped 3.2%. The last time Home Depot reported a same-store sales increase was in Q3 2022.
Chief Executive Ted Decker said in the earnings release that Home Depot continued to grow market share in the first quarter.
"While the quarter was impacted by a delayed start to spring and continued softness in certain larger discretionary projects, we feel great about our store readiness, our product assortment in stores and online and our associate engagement," Decker said.
Home Depot also reaffirmed full-year guidance Tuesday. The Dow Jones giant expects 2024 revenue and EPS to grow around 1% while same-store sales for 2024 are forecast to decrease 1%.
S&P 500: Home Depot Stock
Home Depot shares edged down 0.14% to 340.48 during market trade on Tuesday. The S&P 500 component fell 1.6% to 340.96 Monday but is up around 2% in May.
At the end of March, Home Depot announced an $18 billion deal to increase its focus on professional markets. The big box retailer is scooping up McKinney, Texas-based SRS Distribution, a supplier to roofing, landscaping and swimming pool contractors.
The deal, with a total value of $18.25 billion, is the biggest in Home Depot's 46-year history. It helps to underscore the market strength in the professional building suppliers market. However, Home Depot stock started its pullback since the SRS deal.
HD shares hit a 2024 high of 396.87 on March 21 and has dropped more than 14% since then, finding support at its 200-day moving average. The stock is below its now-sliding 50-day line.
Home Depot stock has a 53 Composite Rating out of a best-possible 99. The S&P 500 stock also has a 50 Relative Strength Rating and a 69 EPS Rating.
Rival Lowe's reports on May 21. Shares edged higher early Tuesday. Lowe's stock is in a consolidation with a 262.49 buy point, but is trading modestly below its 50-day line.
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