The company's S-1 lays the groundwork for what is widely expected to be one of the largest initial public offerings of the year, second only to Uber's IPO in May. It's also...Technologyread more
Fraud investigator Harry Markopolos' accusations extended beyond GE's management to actuaries, auditors and analysts who he claims overlooked billions in liabilities.Marketsread more
Trump's tweet comes a day after Apple put out a press release describing the money it spends on U.S.-based suppliers and vendors.Technologyread more
CNBC combed through Wall Street research to see which stocks are still a buy after their earnings reports.Marketsread more
President Donald Trump held a call on Wednesday with the CEOs of three major U.S. banks, according to people with knowledge of the situation.Marketsread more
Despite aggressive strides, Waymo needs one thing before their self-driving cars become a seriously useful transportation system: people. We talked to the ones closest to it.Technologyread more
Scientists say the smoke plumes, filled with megatons of tiny, harmful particles, could travel to other areas of the world and cause serious respiratory problems for people.Weather & Natural Disastersread more
Some Weight Watchers loyalists applaud Kurbo by WW. But nutritionists worry Kurbo promotes an unhealthy relationship with food during an especially impressionable time.Health and Scienceread more
Benefits from what President Trump called "the biggest reform of all time" to the tax code have dwindled to a faint breeze just 20 months after its enactment, writes John...Politicsread more
Epstein, 66, was found in his cell in Manhattan federal lockup Saturday morning and transferred to a nearby hospital, where he was subsequently pronounced dead.Politicsread more
Air travelers faced delays at U.S. airports on Friday afternoon after a computer issue snarled processing of international arrivals.Airlinesread more
Home Depot on Tuesday reported fiscal first-quarter earnings that beat analysts' expectations, despite record-breaking wet weather in February and falling lumber prices.
Sales performance came in below the company's expectations, Home Depot's CEO Craig Menear said on the company's earnings call. He attributed this to the month of February being the second wettest on record in the U.S. and the decline in lumber prices, which hurt sales growth. However, Menear, was "pleased" with the underlying performance of its core business.
Home Depot shares were recently up less than 1% in afternoon trading.
Here's how the company did, compared with what Wall Street expected, according to Refinitiv consensus estimates:
Same-store sales growth has moderated for the nation’s largest home improvement retailer. Sales at stores open at least 12 months rose 2.5% on a global basis and were up 3% in the U.S. This was shy of the 4.2% estimate from Refinitiv, but it wasn't immediately clear if the numbers were comparable due to an extra week in the year-ago quarter.
"If you ignore the weather and lumber prices, comps would have been closer to 4.5%," the retailer's CFO Carol Tome said on the earnings call.
Tome said February was the only month of the quarter with negative same-store sales both globally and domestically. Globally, comparable sales were down 2% in February, up 5.6% in March and up 3.2% in April. In the U.S., comparable sales were down 1.9% in February, up 6.1% in March and up 4% in April.
Seventeen of 19 regions in the U.S. reported negative same-store sales in February, while only two regions reported same-store sales declines for the quarter, said Tome.
In the quarter ended May 5, net income rose to $2.5 billion, or $2.27 a share, from $2.4 billion, or $2.08 a diluted share, a year earlier. Analysts were predicting the company would earn $2.18 a share.
Revenue climbed 5.7% to $26.381 billion, slightly above Refinitiv's consensus estimate of $26.378 billion.
Home Depot said customer transactions were up 3.8% during the quarter, while the average shopper's ticket increased 2%, and sales per square foot were up 5.6%.
"While the economy generally played ball, the weather did not and a very wet start to the year across many parts of the country meant that spending on items for outdoor projects was down considerably," said Neil Saunders, managing director at GlobalData Retail. "However, as we have seen before, much of this spend is merely delayed and tends to get pushed into other periods. In any case, we believe that Home Depot managed to navigate this slip in demand far better than rivals, including Lowe's. "
Oppenheimer's Brian Nagel told CNBC's "Squawk Box " that improving weather is a good sign for the stock.
"As weather is turning more spring-like … sales in this category are picking up. With Home Depot, that's going to imply a pretty strong second quarter," he said.
The company reaffirmed its guidance for fiscal 2019, which estimates earnings will rise 3.1% to $10.03 per share. Same-store sales are expected to grow 5%, while revenue increases 3.3%.
"Our view on the U.S. economy and the drivers of home improvement spend are not fundamentally different from what we shared with you back in February," said Menear.
Home Depot expects a roughly $1 billion impact on the company from a round of tariffs on $200 billion worth of Chinese goods, which were increased to 20% from 10%. However, it hadn't yet estimated the impact from the latest round of 25% tariffs, and that impact wasn't factored into its earnings forecast.
Home Depot opened two new stores in the first quarter, bringing the company's total to 2,289 stores.
As of Monday's market close, Home Depot market value was $210.6 billion, with shares up more than 11% this year and but less than 1% over the past 12 months. Lowe's, which is set to report earnings before the bell Wednesday, is up 18% since January and 24% over the past 12 months. It has a market cap of $86.9 billion.
Correction: Last quarter, Home Depot's forecast was viewed as disappointing. An earlier story incorrectly said the company cut its forecast. In addition, it is unclear how Home Depot same-store sales compare with estimates, since the company reported its results on a 52-week basis. Last year, its fiscal first quarter had 53 weeks. An earlier headline said same-store sales fell short.