Home Depot Stock Falls After the Company Cut Its Earnings Outlook. Here's What Investors Need to Know.

Core Viewpoint - Home Depot's third-quarter results showed a sales beat but an earnings miss, leading to negative investor reactions and a drop in share price [1][2][4]. Financial Performance - For Q3, Home Depot reported adjusted earnings per share of $3.74 on sales of $41.35 billion, while analysts had expected earnings of $3.84 per share on sales of $41.1 billion [4]. - Same-store sales increased by 0.1% year over year, and the average ticket price rose by 2% [4]. - Overall revenue grew by 2.8% year over year, driven by new store openings and higher average ticket prices, despite a decline in consumer traffic [5]. Guidance Revision - Home Depot revised its full-year guidance, now expecting annual revenue growth of approximately 3%, up from a previous forecast of 2.8%, but below the analyst estimate of 3.2% [6]. - The company lowered its annual same-store sales growth forecast from 1% to "slightly positive," and adjusted earnings per share are now projected to decline by 5% year over year, compared to a previous estimate of a 2% decline [7]. - The revised guidance reflects weaker-than-expected demand due to consumer spending aversion and ongoing pressures in the housing market [8].