ATLANTA (AP) — The cost of the spreading coronavirus pandemic dragged on profits early in the year at Home Depot.
The world's biggest home improvement chain upped compensation for employees, extended dependent care benefits and waived related co-pays. That set Home Depot back by $850 million in pre-tax expenses, or about 60 cents per share.
The cost of sales rose 7.3% in the quarter, which surged 7.1% as homeowners rushed to pick up essential supplies.
But on Tuesday, Home Depot pulled its financial guidance for the year with so much still unknown about the spread and duration of the virus, or its impact on spending.
Shares dropped 2.6% before the opening bell.
For the three months ended May 3, Home Depot Inc. earned $2.25 billion, or $2.08 per share. Industry analysts had expected $2.26 per share., according to a survey by Zacks Investment Research.
Last year, the Atlanta company earned $2.51 billion, or $2.27.
Revenue increased to $28.26 billion, from $26.38 billion, beating Wall Street's estimate of $27.61 billion.
Sales at stores open at least a year rose 6.4%. In the U.S., they climbed 7.5%.
Before you consider Home Depot, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Home Depot wasn't on the list.
While Home Depot currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
As the AI market heats up, investors who have a vision for artificial intelligence have the potential to see real returns. Learn about the industry as a whole as well as seven companies that are getting work done with the power of AI.
Get This Free Report
Like this article? Share it with a colleague.
Link copied to clipboard.
