HOME DEPOT MISSES PROFIT EXPECTATIONS, STOCK IN BREAKDOWN BELOW MAs
In the pre-market trading session, Home Depot’s stock was trading at 183.80-lower by 3.25% as compared to the previous closing price.
The company on Tuesday morning reported earnings and sales for the fourth quarter that missed the market expectation. Home Depot also offered a weaker-than-anticipated outlook for fiscal 2019.
The company generated adjusted EPS of $2.09 for the fourth quarter. The EPS was below the market expectation of $2.16. The company brought in $26.49 billion in revenue for the fourth quarter. The revenue was below the consensus estimates of $26.57 billion. Sales at stores open for at least 12 months were up 3.2%, missing the expected growth of 4.5%.
For fiscal 2019, Home Depot expects to earn $10.03 per share, 23 cents short of market expectations. The company is calling for same-store sales to be up 5% in fiscal 2019, with revenue rising by about 3.3%. In fiscal 2018, same-store sales rose 5.2%, and revenue was up 7.2%.
On the technical front, the current price is below the MA5 (191.63) and the MA20 (187.15). The current price is below the middle line of the Bollinger Bands and is heading downwards. The stock is expected to trade lower today.
TRADE SUGGESTION- STOP SELL AT 183.70 TAKE PROFIT AT 182.00 STOP LOSS AT 184.60