It’s always a little bit of a crapshoot when a company that relies on same-store sales as a metric reports their results. Same-store sales is exactly that: How did existing stores perform versus the same period last year/last quarter? It often measures store around for a certain period of time, often a year.
I received a CNBC alert a few minutes ago that said Home Depot (HD: NYSE) earnings per share of 2.09 versus an expected 2.16 per share, a miss. They reported revenue of 26.49 billion versus an expected 26.57 billion, another miss.
Home Depot, being a retail company, is subject to the same-store sales metric. Regrettably, same-store sales were up 3.7% versus an expected 4.5%.
Needless to say, the stock is under pressure early in the morning here. Now, to brighten the news a bit, the company announced a dividend hike and a $15 billion share buyback. In a better all-around report, this stock would likely have been moving higher. Beware the same-store sales!
This article is written for informational purposes and from sources believed to be reliable. It is not intended as investment advice and should not be relied upon as such. This is not a recommendation to buy or sell any stock mentioned. All investing involves risk. Consult with a qualified advisor to determine what investments are right for you.