LONDON (ShareCast) - (Sharecast News) - Home improvement retailer Home Depot reported quarterly revenues that fell short of analysts' expectations on Tuesday and sounded a somewhat cautious note on future trading amid a difficult consumer backdrop.
Home Depot stated Q4 earnings per share had come to $3.30 each, ahead of estimates of $3.28 per share. However, revenues rose just 0.3% to $35.83bn, falling short of expectations for a reading of $35.97bn - the firm's first revenue miss since November 2019. Net income was also 0.3% higher year-on-year at $3.36bn.

The Atlanta-based firm cited a drop in lumber costs, which surged in 2021 due to nationwide shortages, as being the sole cause of its sales miss, with lower lumber sales prices negatively impacting comparable sales by 0.7%.

"But for that we would have been right in line with our expectations," said chief financial officer Richard McPhail.

"After two years of high volatility, we've seen a little more stability in recent weeks and months, but it's hard to predict lumber prices."

In terms of 2023 guidance, Home Depot anticipates both overall and comparable sales to be broadly flat year-on-year and guided towards a mid-single digit percent decline in diluted earnings per share amid pressure in the goods sector and flat consumer spending.

As of 1415 GMT, Home Depot shares were down 4.16% in pre-market trading at $304.71 each.





Reporting by Iain Gilbert at Sharecast.com

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