Home Depot Cuts 2019 Sales Guidance; Shares Plunge - Quick Facts

(RTTNews) - The Home Depot (HD) announced, for fiscal 2019, the company now expects sales to grow by approximately 1.8 percent and comp sales for the comparable 52-week period to increase approximately 3.5 percent. Previously, the company projected sales growth of 2.3 percent and comp sales growth of 4.0 percent. The Home Depot reaffirmed fiscal year earnings per share guidance and expects earnings per share growth of approximately 3.1 percent from fiscal 2018 to $10.03.

For the third quarter, earnings per share was $2.53, compared to $2.51, last year. On average, 30 analysts polled by Thomson Reuters expected the company to report profit per share of $2.52, for the quarter. Analysts' estimates typically exclude special items.

Third quarter sales were $27.2 billion, an increase of 3.5 percent, from a year ago. Comparable sales were up 3.6 percent, and comparable sales in the U.S. were up 3.8 percent. Analysts expected revenue of $27.53 billion for the quarter.

"Our third quarter results reflected broad-based growth across our business, yet sales were below our expectations driven by the timing of certain benefits associated with our One Home Depot strategic investments. We are largely on track with these investments, but some of the benefits anticipated for fiscal 2019 will take longer to realize than our initial assumptions. As a result, we are updating our sales guidance."

Shares of The Home Depot were down nearly 5% in pre-market trade on Tuesday.