Home Depot's Q3 Earnings Disappoint Despite Revenue Beat

Home Depot's Q3 earnings fell short of expectations as revenue rose by only 2.8% year-over-year to $41.35 billion, beating estimates of $41.12 billion but missing adjusted diluted EPS targets with a result of $3.74 versus an estimate of $3.83.

CEO Ted Decker pointed to the lack of storms in the quarter as a primary factor contributing to lower demand for building materials, which usually drives growth during this time period.

Average ticket prices increased by 1.8% to $90.39, but were offset by a 1.6% decline in customer transactions, resulting in only a 0.2% increase in comparable sales.