The cost of the spreading coronavirus pandemic dragged on profits early in the year at Home Depot.
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-based company earned $2.51 billion, or $2.27 per share.
The company’s stock fell nearly 3% and closed at $238.10.
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.
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%.
The company 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.