Home Depot Falls as Next Year’s Forecast Rips Off ‘Band-Aid’
- Sales and margin forecasts indicate lower EPS, analysts say
- Sentiment on Home Depot was low heading into investor meeting
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Home Depot Inc. shares fell as much as 2.5% Wednesday as the retailer’s sales and operating margin guidance for next year disappointed Wall Street. The forecasts were provided ahead of the its 2019 Investor and Analyst Conference, which began at 9 a.m.
Analysts weren’t completely surprised by the guide down, following Home Depot’s weaker-than-expected third-quarter report Nov. 19, which included cuts to its current year comparable sales and net sales forecasts. Sentiment was low in the stock since then, with shares down 9.6% through Tuesday’s close. The slightly lower views will result in earnings-per share reductions for the year ending in January 2021, sell-side analysts said this morning.