Home Depot stock pointed higher in premarket trading Tuesday after the home-improvement retailer reiterated its fiscal-year guidance and provided an upbeat market outlook.
Ahead of its annual investor and analyst conference, Home Depot (ticker: HD) stuck to its fiscal-year outlook of sales declining between 2% and 5% from the previous year. It sees earnings per share falling between 7% and 13%.
That will come as a relief to investors after Home Depot cut its guidance when it reported first-quarter earnings last month amid softening consumer spending. It suggests things haven't gotten worse in the month or so since.
The stock climbed 1.1% in premarket trading Tuesday, after closing 1.2% higher on Monday.
The world's largest home-improvement retailer also revealed its base case forecast for the wider market in the years ahead.
"Once the home-improvement market returns to stability, we expect to see sales growth consistent with how our business has performed in the past," said Chief Financial Officer Richard McPhail. Home Depot predicts sales growth per year between 3% and 4%, and mid-to-high single digit growth in earnings per share.
"While the base case assumes share capture, we are not ruling out a case for even higher growth," McPhail added.