Core Insights - Home Depot reported earnings per share of $3.74 for Q3 fiscal 2025, missing the estimated $3.81, but exceeded revenue expectations with $41.35 billion [2][6] - The revenue growth includes approximately $900 million from the acquisition of GMS Inc., resulting in a 2.8% increase compared to the same period in fiscal 2024 [2][6] - The company's stock has declined due to the earnings miss and a pessimistic outlook, attributed to a lack of storms and ongoing weakness in the housing market [3][6] Financial Performance - Net earnings for Q3 remained steady at $3.6 billion, translating to $3.62 per diluted share, slightly down from $3.67 per diluted share in the previous year [4] - Adjusted diluted earnings per share were $3.74, compared to $3.78 in fiscal 2024 [4] - Home Depot's financial metrics include a price-to-earnings (P/E) ratio of approximately 24.36, a price-to-sales ratio of about 2.14, and an enterprise value to sales ratio of around 2.25 [5] Market Position - Home Depot is the world's largest home improvement retailer, competing with major retailers like Lowe's [1] - The company has reported a decline in third-quarter profit and has subsequently lowered its full-year outlook [3]

Company Performance - Home Depot shares fell 4% after the company reported disappointing third-quarter earnings and cut its full-year profit outlook [1] - Cloudflare shares declined 3% due to an outage affecting several prominent customers, including social media site X and ChatGPT [2] - Medtronic shares rose 4% after reporting better-than-expected fiscal 2026 second-quarter results and lifting its full-year outlook [4] - Merck stock advanced 4% following positive results from a Phase 2 trial of a heart drug [4] Market Trends - Major U.S. equities indexes, including the Dow Jones Industrial Average and Nasdaq, were down about 1%, with the S&P 500 falling 0.6% amid concerns about an AI bubble [1] - Oil and gold futures slipped, while the yield on the 10-year Treasury note edged lower [5] - Prices for most major cryptocurrencies were higher, with Strategy (MSTR) rebounding roughly 6% along with the price of Bitcoin [4]

Market Overview - The equity market is experiencing a decline, with concerns ahead of NVIDIA's earnings report and the Employment Situation report for September [1] - Major indexes are down, with the Dow at -349 points (-0.75%), S&P 500 at -30 points (-0.46%), Nasdaq at -137 points (-0.59%), and Russell 2000 at -10 points (-0.43%) [2] - Over the past five trading days, the S&P has decreased by -3.2% and the Russell by -5.2% [2] Employment Data - The ADP Weekly Jobs Report indicates a loss of 2,500 private-sector jobs last week, an improvement from the previous week's loss of 11,000, but still reflects a weak employment situation [3] - The upcoming September jobs numbers may align with the ADP data, potentially influencing market sentiment regarding a possible interest rate cut by the Federal Reserve [4] Economic Reports - Upcoming releases include the October Imports & Exports report, Industrial Production & Capacity Utilization, and a delayed Factory Orders report [5] - The Homebuilders Confidence Index for November is expected to remain soft at a level of 37, unchanged from October [5] Home Depot Performance - Home Depot reported Q3 earnings of $3.74 per share, missing the Zacks consensus estimate of $3.81 by -1.84%, although revenues slightly exceeded expectations at $41.35 billion, a +0.88% increase [6] - The company has lowered its guidance for Q4 and the full fiscal year, leading to a -5% drop in shares during pre-market trading [7] - Year-to-date, Home Depot's stock is down -8% and -12% compared to the same time last year, affected by a prolonged weak housing cycle and immigration enforcement actions [7]

Key Takeaways Home Depot posted higher Q3 sales and EPS but missed consensus on the bottom line.Results were weighed by absent storm activity, consumer uncertainty and housing market softness.FY25 outlook was trimmed, with lower margin and EPS expectations and a modest comps view.The Home Depot Inc. (HD) reported third-quarter fiscal 2025 results, wherein the top line beat the Zacks Consensus Estimate, while the bottom line missed the same. However, sales and earnings per share (EPS) improved year over year ...

The seemingly sturdy U.S. stock market has begun to wobble. Its monthslong tech-driven rally may be running out of steam amid broader uncertainty about the U.S. economy’s outlook.On Tuesday, the S&P 500, one of the broadest measures of U.S. stocks, fell more than 0.5% and looked headed for its fourth-straight day of losses. The Dow Jones Industrial Average and the tech-heavy Nasdaq were also in the red. Heavier losses were likely prevented by so-called retail investors, like day traders, who have adopted “b ...

Core Viewpoint - Lowe's Companies, Inc. is a leading home improvement retailer in the U.S., set to release quarterly earnings with an estimated EPS of $2.97 and projected revenue of $20.84 billion on November 19, 2025 [1][6] Financial Performance - Analysts project Lowe's revenues at $20.9 billion for the upcoming quarter, reflecting a 3.4% increase from the previous year, with an EPS estimate of $2.98, indicating a 3.1% rise year-over-year [4] - The company has historically delivered an average earnings surprise of 2.9% over the past four quarters, consistently exceeding market expectations [5][6] Business Strategy - Lowe's is focusing on pro-focused growth and technological investments, which are expected to positively impact its performance [4][6] - The company has a strong capital structure, with a debt-to-equity ratio of approximately -3.43, indicating effective debt management [2] Market Position - Despite strong fundamentals, Lowe's faces limited potential for price appreciation, with a P/E ratio of around 18.34 and a price-to-sales ratio of about 1.51, suggesting it may be fully valued [3] - The company benefits from robust liquidity and a strategic geographic presence, aiding in navigating market challenges [2]

We're back on [music] Morning Trade Live. Let's focus on retail earnings now. Starting first with Home Depot.The stock is falling in after the big box retailer reported weaker than expected third quarter earnings. The CEO pointing to consumer uncertainty and continued housing market pressure having a negative impact on home improvement demand. So, here's a look at the chart.Here's the price action for the major players in the sector today as well. We've got Lowe's and Costco. Uh we'll have a look at those a ...

Core Viewpoint - Home Depot's stock declined 3.4% after reporting Q3 earnings that missed expectations on profit but exceeded sales forecasts [1][7] Financial Performance - Analysts had anticipated a Q3 profit of $3.83 per share on sales of $41.1 billion, but Home Depot reported earnings of $3.74 per share, adjusted for one-time items, with actual sales at $41.4 billion [1] - Year-over-year sales growth was 2.8%, but $900 million of the $1.1 billion increase was attributed to inorganic growth from the acquisition of GMS Inc. [3] - Same-store sales growth was only 0.2%, with half of that growth occurring outside the U.S. [3] - Under GAAP, earnings were reported at $3.62 per share, a decrease of $0.05 from the previous year's Q3 [4] Future Outlook - Home Depot projects a 3% sales growth for the year, primarily due to the GMS acquisition, but anticipates a potential earnings decline of up to 6% in 2024, estimating earnings around $14.01 per share [4] - The current price-to-earnings ratio stands at approximately 24.6 times, which is considered high given the shrinking profits [5] Investment Sentiment - Analysts express a "sell" recommendation on Home Depot stock due to the weak earnings and guidance [5][7] - Home Depot was not included in a list of top stock recommendations by The Motley Fool Stock Advisor, which identified ten better investment opportunities [8]

Home Depot's stock slipped nearly 2.7% on Tuesday during opening trade after the home improvement retailer missed third-quarter profit expectations and slashed its full-year earnings outlook. The comp... ...

Core Insights - Home Depot has revised its full fiscal 2025 outlook, indicating significant pressure on profitability despite a strategic shift towards B2B and wholesale markets [1][10] - The company's modest top-line growth is largely attributed to the acquisition of GMS Inc., suggesting that organic sales growth is stagnating and falling short of expectations [1][7] Financial Performance - Comparable sales for the quarter increased by only 0.2% globally and 0.1% in the U.S., indicating a lack of meaningful growth from existing stores [6][10] - The acquisition of GMS contributed approximately $900 million in sales over eight weeks, but organic growth was only $200 million, highlighting potential issues in the core business [7][8] Market Dynamics - Consumer uncertainty and ongoing pressures in the housing market are negatively impacting home improvement demand, as noted by the CEO [3][4] - The high-end Pro customer segment remains more resilient but is still affected by rising costs and project timelines, while average DIY consumers are reducing spending on large projects [9][11] Profitability Outlook - The company anticipates a decline in diluted EPS of approximately 6.0% from fiscal 2024, signaling that topline challenges are overwhelming cost-control efforts [10][11] - Despite acquiring $2.0 billion in new revenue, Home Depot is bracing for a 5% to 6% reduction in profitability, indicating potential margin compression [11][12] Strategic Positioning - Home Depot is currently focused on integrating GMS and optimizing operations for a low-growth environment, with leadership needing to demonstrate that current performance issues are market-driven rather than indicative of structural weaknesses [12][13] - The company is transitioning from aggressive growth strategies to a more cautious approach, preparing for an extended period of slow market conditions [13]