Home Depot executives may agree the company could use some fixing
Home Depot Inc. (NYSE:HD) reported a 27 percent increase in earnings thanks to unseasonably warm weather all over the country during the first quarter of 2012, however the company's net revenue fell short of analysts expectations, sending shares of the company down by 3.5 percent.
The company brought in $1.04 billion, or 68 cents per share - higher than last year's profit of $812 million, or 50 cents per share. Revenue increased by 5.9 percent to $17.81 billion, lower than the $17.96 billion analysts had estimated. Even the company's full-year profit estimate, which it raised from $2.79 a share to $2.90 a share, fell short of analysts forecasts.
By 4:43 p.m. on Tuesday, Home Depot stock was down 2.43 percent to $48.67. According to Barron's, the low price does not indicate a buying opportunity, as the company's stock is priced for earnings growth Home Depot may fail to deliver.
It appears the slump may have been a long time coming, as company insiders at Home Depot filed insider trades in the last three months that amounted to $33.54 million.
Read Full Insider Report For:
HD |
