Home Depot (HD) Lags Q3 Earnings Estimates

Core Viewpoint - Home Depot reported quarterly earnings of $3.74 per share, missing the Zacks Consensus Estimate of $3.81 per share, representing an earnings surprise of -1.84% [1] - The company posted revenues of $41.35 billion for the quarter, surpassing the Zacks Consensus Estimate by 0.88% and showing a year-over-year increase from $40.22 billion [2] Financial Performance - Home Depot's earnings of $3.74 per share compare to $3.78 per share a year ago, indicating a slight decline [1] - The company has surpassed consensus revenue estimates three times over the last four quarters, while it has only exceeded EPS estimates once in the same period [2] Stock Performance - Home Depot shares have declined approximately 8% since the beginning of the year, contrasting with the S&P 500's gain of 13.4% [3] - The current Zacks Rank for Home Depot is 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.89 on revenues of $37.99 billion, and for the current fiscal year, it is $14.96 on revenues of $164.12 billion [7] - The estimate revisions trend for Home Depot was mixed ahead of the earnings release, indicating potential changes in expectations following the report [6] Industry Context - The Retail - Home Furnishings industry, to which Home Depot belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, highlighting the importance of tracking these revisions [5]