Home Depot Stock Rises Pre-Market After Q3 Beat: Retail Saw It Coming

Shares of Home Depot, Inc. ($HD) climbed over 2% in Tuesday’s pre-market trading after the home improvement giant posted stronger-than-expected third-quarter (Q3) results and raised its full-year guidance. If the stock sustains its early gains, it could reportedly close at a record high.

Home Depot reported net income of $3.6 billion, or $3.67 per share, down from $3.8 billion, or $3.81 per share, in the same quarter last year. 

Adjusted earnings per share (EPS) came in at $3.78, beating the consensus estimate of $3.65. 

Revenue for the quarter rose by 6.6% to $40.2 billion, surpassing analysts’ expectations of $39.31 billion.

Despite strong overall sales, same-store sales fell by 1.3%, which was a better outcome than the 3.1% decline expected by analysts. 

CEO Ted Decker said that the Q3 performance exceeded the company’s expectations but warned of “macroeconomic uncertainty” lingering.

"As weather normalized, we saw better engagement across seasonal goods and certain outdoor projects as well as incremental sales related to hurricane demand,” he added. 

Home Depot raised its full-year guidance, now expecting sales growth of about 4%, up from its previous range of 2.5% to 3.5%. 

However, it adjusted its outlook for same-store sales, anticipating a decline of about 2.5%, worse than the earlier forecast of a 3% to 4% drop. 

EPS is now expected to decline by approximately 2%, an improvement from the prior guidance of a 2% to 4% decrease.

Data from Stocktwits indicated that retail investors were already ‘extremely bullish’ on Home Depot ahead of the earnings announcement. 

Message volume surged during the prior session, with users expressing optimism about the company’s potential to outperform. 

One bullish user predicted hours before the earnings release that the stock would rise beyond the $420 mark following earnings. 

Another user said that low interest rates would benefit Home Depot. 

Home Depot’s stock is up nearly 18% year-to-date, but still underperforming the broader S&P 500’s 25% gain.

For updates and corrections email newsroom@stocktwits.com 

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