Sales at Home Depot rose 5.9 percent to about $17.81 billion in the first quarter, which fell short of analysts’ average estimate of $17.96 billion.
“The revenues were up 6 percent,” she said. “We were looking for 5 (percent) officially, but with perfect weather, you would expect more than this.”
The company said it expects sales to pick up later in the year. It forecast fiscal-year sales rising about 4.6 percent, up from its prior outlook calling for a 4 percent increase. Home Depot raised its profit outlook for the year to $2.90 a share from $2.79 a share.
Champine added that she thinks the stock is closer to the bottom of its cycle than to the top.
“Our price target is $45, and I think that’s likely near term just as people got too excited about home-related spending improving,” she said. “This is a little underwhelming.”
Additional News: Home Depot Earnings Report
Additional Views: Momentum in Home Improvement Stocks: Analyst
CNBC Data Pages:
Laura Champine does not own stock in the companies mentioned in this article.
Follow Katie Little on Twitter @katie_little.