Wall Street reacts to mixed earnings: Home Depot advances, Hims & Hers retreats, Constellation Energy edges higher - Trance Living

Wall Street reacts to mixed earnings: Home Depot advances, Hims & Hers retreats, Constellation Energy edges higher

The fourth-quarter reporting period is entering its last phase, and Tuesday’s pre-market session offered a fresh look at how varied sectors are absorbing shifting consumer and industrial trends. Shares of Home Depot climbed after the retailer delivered stronger profits than analysts anticipated, while Hims & Hers Health declined on lower year-over-year earnings despite a top-line beat. Constellation Energy traded modestly higher following revenue that exceeded Wall Street forecasts.

Home Depot posts profit surprise amid cautious consumer backdrop

In its fiscal fourth quarter ended Jan. 26, Home Depot reported net sales of $38.2 billion, a 4 % decline from the prior year and just under the $38.3 billion consensus compiled by Bloomberg. Adjusted earnings reached $2.72 per share, comfortably ahead of the $2.55 analysts expected. Comparable sales rose 0.4 %, reversing projections for a 0.4 % drop as average ticket values increased even though overall transactions fell.

Chief Executive Ted Decker characterized demand as “relatively stable” when adjusted for a lighter hurricane season, but he acknowledged continued uncertainty tied to housing affordability and higher interest rates. For the full fiscal year, revenue totaled $164.68 billion, slightly above estimates, and adjusted earnings landed at $14.69 per share.

The home-improvement chain reiterated guidance first issued in December: total sales are projected to advance 2.5 % to 4.5 % in the current year, with comparable sales ranging from flat to up 2 %. Management expects adjusted earnings to track between flat and 4 % growth from the just-completed year’s result.

Investors responded positively. The stock gained nearly 3 % in pre-market trading and is now up about 10 % since January, outperforming the flat S&P 500 over the same span.

Telehealth provider Hims & Hers sees profit slip

After Monday’s closing bell, Hims & Hers reported fourth-quarter earnings of $0.08 per share, topping the $0.05 consensus but declining from $0.11 a year earlier. Revenue came in at $617.8 million, roughly matching expectations. Traders focused on the profit contraction, sending the shares down more than 2.5 % in after-hours dealings.

Management offered a brighter 2026 revenue outlook that surpassed analyst estimates, suggesting continued demand for the company’s direct-to-consumer prescription offerings. Nevertheless, the shortfall in profitability underscored rising customer-acquisition costs and competitive pressure in the digital health space.

Constellation Energy benefits from higher power prices

Utility and generation firm Constellation Energy posted adjusted earnings of $2.30 per share, a penny below estimates, but revenue surged to $6.07 billion versus the $4.95 billion analysts had penciled in. The stock edged higher in early trading as investors weighed the revenue beat against the slight earnings miss.

The company pointed to elevated wholesale power prices and stable nuclear output as key drivers. Growing electricity demand—forecast by the U.S. Energy Information Administration to rise steadily through the decade—has supported Constellation’s pricing power and capacity utilization.

Planet Fitness tops estimates yet issues cautious sales guidance

Gym operator Planet Fitness earned $0.73 per share on revenue of $376.3 million, surpassing respective forecasts of $0.68 and $367.9 million. Membership reached 20.8 million across nearly 2,900 clubs, reflecting a net gain of about 1.1 million members during 2025, the first full year after a 50 % price increase on its Classic Card membership tier. Despite the beat, the stock slipped roughly 5 % in pre-market action after the company guided to 4 %–5 % system-wide sales growth and about 9 % revenue expansion in 2026, slightly below consensus.

Dominion Energy steadies profits, outlines capital plan

Dominion Energy reported fourth-quarter earnings of $0.65 per share, matching estimates, and revenue of $4.1 billion, ahead of projections. Full-year earnings of $3.45 per share came in just under forecasts, and 2026 guidance of $3.45–$3.69 bracketed expectations but leaned modestly lower at the midpoint. The utility highlighted investment in transmission and natural-gas infrastructure to meet growing regional demand.

Domino’s Pizza expands footprint, meets revenue targets

Domino’s closed fiscal 2025 with fourth-quarter revenue of $1.54 billion, up 6.4 % year over year and slightly ahead of estimates. Adjusted earnings of $5.35 per share missed by two cents. U.S. comparable sales climbed 3.7 %, beating consensus, while international comps grew below forecasts at 0.7 %. The chain added 776 stores during the year, lifting its global count to 22,142, and projects continued gains through third-party delivery partnerships.

Broader earnings calendar nears finale

The coming days will include results from companies spanning technology, media, and retail. Of particular interest is Nvidia, the final member of the so-called “Magnificent Seven” mega-cap tech cohort to report this cycle. Investors will scrutinize the chipmaker’s figures for signs of sustained demand for its artificial-intelligence processors, which underpin multibillion-dollar spending programs at major cloud providers.

Media rivals Warner Bros. Discovery and Paramount Skydance are also on deck, with Paramount simultaneously maneuvering through an acquisition bid from Netflix. Among consumer-facing names, Salesforce, Lowe’s, and Snowflake are slated to release quarterly data that will help gauge corporate software budgets and homeowner spending trends.

Market context

Equity benchmarks have traded sideways in recent sessions as investors balanced stronger-than-expected retail sales against hotter inflation prints. Earnings surprises—positive and negative—continue to influence single-stock moves even as index levels remain range-bound. According to data from FactSet, roughly 90 % of S&P 500 constituents have now reported, with 75 % exceeding profit expectations, above the five-year average of 69 %.

Home Depot’s outperformance provided a reminder that cost controls and ticket-size growth can offset softer volumes, while Hims & Hers illustrated the margin pressures that can arise as growth companies transition from expansion to profitability. Constellation Energy’s trading reaction, by contrast, highlighted how utilities can benefit from macro trends—such as rising power demand and pricing—despite heavily regulated environments.

As the season winds down, focus is shifting toward how management teams frame 2026. Guidance so far has leaned conservative, reflecting uncertainty over consumer spending, rate trajectories, and input costs. Investors will parse forthcoming releases for any commentary on supply-chain normalization, wage inflation, and capital-expenditure plans, all of which could shape broader market sentiment into the second quarter.

Crédito da imagem: Yahoo Finance


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John Carter

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