The cost of the spreading coronavirus pandemic dragged on profits early in the year at Home Depot
May 19, 2020, 10:38 AM
1 min read
ATLANTA -- The cost of the spreading coronavirus pandemic dragged on profits early in the year at Home Depot.
Sales did rise as homeowners rushed to pick up essential supplies but on Tuesday, the home improvement chain 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.
Yet the cost of sales rose 7.3%. Home Depot said virus-related costs cut 60 cents per share in profit.
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%.
