Home Depot Just Released a Depressing Outlook For 2019

Home improvement retailer Home Depot reported fourth quarter earnings that didn’t impress Wall Street this week.

The company reported earnings of $2.09 a share, coming 7 cents behind the $2.16 that analysts according to Refinitiv had been waiting for. Revenue at $26.49 billion was also below the $26.57 billion that analysts expected.

Looking ahead, the company said it is expecting to earn $10.03 a share for 2019. This is less than the $10.26 that analysts were waiting for.

Same-store sales growth is expected to be 5% with revenue growth of 3.3%.

Home Depot also announced that it is shifting its calendar for the 2019 fiscal year to include 52 weeks instead of 53 in 2018.

“As we look to 2019, most housing metrics are trending positive, albeit trending toward stability,” said CFO Carol Tome.

It was in December that housing starts dropped 11.2% according to the Commerce Department. This is the slowest pace of construction in over two years.

“Housing related metrics are moderating,” Tome said during the call. “But the drivers of home improvement spend are supportive of our outlook. Home prices continue to appreciate, the housing stock is aging, households are being formed and housing continues to turn over.”

According to Tome, the company expects the U.S. gross domestic product to grow by 2.6 percent during this year. The Fed said in December that it is forecasting GDP growth of 2.3 percent.

Disclaimer: We have no position in Home Depot Inc. (NYSE: HD) and have not been compensated for this article.