Why Investors Are Suddenly Watching Home Depot and Lowe's Stock More Closely This Week

Lowe’s Companies, Inc. (NASDAQ:LOW) is trading lower in sympathy with Home Depot, Inc. (NASDAQ:HD) after the home improvement retailer reported worse-than-expected Q3 adjusted EPS results and cut its FY25 adjusted guidance.

What Happened: Home Depot reported earnings before the market opened on Tuesday. The company shared mixed results, reporting quarterly earnings of $3.74 per share and missing the analyst consensus estimate of $3.85. The company reported quarterly sales of $41.352 billion, which beat the analyst consensus estimate of $41.137 billion.

Home Depot lowered its full year guidance for adjusted earnings-per-share from $14.94 to $14.48, which is a bit below the $14.99 market estimate. The company raised its full year sales guidance from $163.98 billion to $164.299 billion against an estimate of $164.742 billion estimate.

"Our results missed our expectations primarily due to the lack of storms in the third quarter, which resulted in greater than expected pressure in certain categories. Additionally, while underlying demand in the business remained relatively stable sequentially, an expected increase in demand in the third quarter did not materialize,” said Home Depot CEO Ted Decker.

“We believe that consumer uncertainty and continued pressure in housing are disproportionately impacting home improvement demand.”

Why It Matters: Both Home Depot and Lowe’s operate in the home improvement specialty retail space. Lowe’s is the second-largest home improvement retailer in the world behind Home Depot.

Lowe’s is due to report earnings before the market open on Wednesday. Analysts estimate that Lowe’s Companies will report earnings per share of $2.96.

LOW Price Action: Shares of Lowe’s were down 1.40% and trading at $221.91 at the time of publication, according to Benzinga Pro.

HD Price Action: Shares of Home Depot were down 3.92% and trading at $344.01 at the time of publication, according to Benzinga Pro.

Read More:

• Home Depot CEO Issues Cautionary Comments On Housing Demand, Cuts Profit Outlook
  

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