Home Depot Inc (NYSE: HD) reported its third-quarter
results on Tuesday, which initially sent shares higher. However, throughout the trading session, shares of the do-it-yourself
home improvement retailer slipped into negative territory and ended the day lower by 2.56 percent at $124.40.
Home Depot's closest peer Lowe's Companies, Inc. (NYSE: LOW) reported its results Wednesday morning. Brian Nagel of Oppenheimer cautioned investors that "Lowe's typically
underperforms Home Depot. Once again, this was the case in Lowe's report.
Lowe's stock lost more than 5 percent early Wednesday morning.
Here is a brief comparison between the two results.
EPS, Revenue, Net Income
- Home Depot: EPS of $1.60 ($0.02 beat), revenue of $23.15 billion ($0.1 billion beat), net earnings of $2.0 billion (up from
$1.7 billion a year ago).
- Lowe's: EPS of $0.88 ($0.08 miss), revenue of $15.74 billion ($0.12 billion miss), net earnings of $379 million (down from
$736 million a year ago).
Comps
- Home Depot: Q3 comps rose 5.5 percent (5.9 percent for U.S. stores).
- Lowe's: Q3 comps rose 2.7 percent.
Outlook
- Home Depot: Company raised 2016 EPS guidance to $6.33 from $6.31, guided for 6.3 percent rise in sales and 4.9 percent comp
growth.
- Lowe's: Company expects sales to rise 9 to 10 percent, comparable sales to rise 3 to 4 percent and earnings per share to be
around $3.52.
Commentary
- Home Depot: "We experienced balanced sales growth in the quarter driven by an increase in both ticket and transactions, and
our continued focus on productivity drove double-digit earnings-per-share growth," said Craig Menear, chairman, CEO and
president. "I would like to thank our associates and suppliers for their hard work and dedication to our customers throughout the
quarter, and particularly in the face of Hurricane Matthew and the flooding in Louisiana."
- Lowe's: "Our third quarter operating results were below our expectations due to slower sales in the first two months of the
quarter," commented Robert A. Niblock, Lowe's chairman, president and CEO. "While we expected moderation in the second half of
the year, traffic slowed more than we anticipated in August and September before improving in October, which put pressure on our
profitability in the quarter."
At Last Check ...
In pre-market trading Wednesday, Lowe's was seen down 4.42 percent at $66. Home Depot was down 0.32 percent at $124.
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