Home Depot Shares Slip 3% as Adjusted Earnings Miss Despite Revenue Beat

Core Viewpoint - Home Depot reported third-quarter adjusted earnings that fell below analyst expectations, leading to a 3% decline in stock price despite revenue slightly exceeding forecasts [1]. Financial Performance - Adjusted EPS for the third quarter was $3.74, which was lower than the consensus estimate of $3.84 [2]. - Revenue increased by 2.8% year over year to $41.4 billion, surpassing expectations of $41.18 billion [2]. - The revenue figures included approximately $900 million from the acquisition of GMS Inc., accounting for around eight weeks of consolidation [2]. - Comparable sales rose only 0.2%, with U.S. comparable sales up 0.1%, indicating ongoing softness in the housing market and consumer spending [2]. Future Outlook - Home Depot updated its fiscal 2025 outlook, projecting approximately 3% total sales growth and "slightly positive" comparable sales for the comparable 52-week period [3]. - Adjusted diluted earnings per share are expected to decline by roughly 5% from fiscal 2024's figure of $15.24 [3].