• The stock price of Home Depot Inc (NYSE: HD) fell by over 5% intraday today. This is why.

The stock price of Home Depot Inc (NYSE: HD) fell by over 5% intraday today.

Why: Q4 results

Q4 results: Home Depot reported a Q4 EPS of $3.30, which was $0.02 higher than a consensus of $3.28. And the revenue for the quarter was $35.8 billion compared to a consensus of $35.96 billion.

The company provided the following guidance for fiscal 2023:

— Sales growth and comparable sales growth to be approximately flat compared to fiscal 2022

— Operating margin rate of approximately 14.5 percent, which is about $1 billion in additional annual compensation for frontline, hourly associates

— Tax rate of approximately 24.5 percent

— Diluted earnings-per-share-percent-decline to be mid-single digits

KEY QUOTES:

“Fiscal 2022 was another record year for The Home Depot as our team continued to successfully execute in a challenging and dynamic environment. Our ability to deliver growth on top of the $40 billion of sales growth achieved over the prior two-year period, while navigating persistent inflation, ongoing global supply chain disruptions, and a tight labor market, is a testament to investments we have made in the business, as well as our associates’ relentless focus on our customers. I would like to thank our associates and our many partners for their hard work and dedication to our customers.”

“The most important investment we can make is in our people. We believe this investment will position us favorably in the market, enabling us to attract and retain the level of talent needed to sustain the customer experience we strive to deliver.”

— Ted Decker, chair, president and CEO