markets

Helena Cheng16h

Home Depot reports Q1 sales beat, reaffirms full-year guidance

Home Depot reversed its initial gains following earnings after a spike in long-term bond yields overshadowed the retailer's solid Q1 results.

Key numbers:

Revenue of $41.77 billion (estimate: $41.50 billion).
Adjusted earnings per share of $3.43 (estimate: $3.42).
Comparable-store sales of 0.6% (estimate: 0.9%).

Comparable sales came in below forecasts, while the company reaffirmed its full-year guidance, expecting annual sales to grow between 2.5% and 4.5%.

“Our first quarter results were in line with our expectations,” said Ted Decker, chair, president, and CEO. “The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure.”

While the company has served neighborhood handymen for decades, its recent growth is also partially charged by its finalized acquisition of Mingledorff’s, a premier wholesale HVAC distributor operating 42 commercial locations across the southeastern United States. Home Depot said the transaction gave it access to high-volume commercial mechanics and residential trade contractors, expanding its total addressable market to $1.2 trillion.

The company is also using machine learning to automate parts of commercial building work that have traditionally been manual. One example is its Material List Builder AI, which lets contractors upload architectural blueprints or dictate voice notes from a jobsite to generate materials lists.

Investors are continuing to track whether strategic pricing changes and distribution scale can help the business maintain its full-year gross margin target of 33.1%.

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Roblox jumps after announcing $3 billion share buyback plan

Roblox rallied in postmarket trading on Tuesday after unveiling its first-ever share repurchase program.

The somewhat controversial, but certainly popular, gaming company has put forth a plan for $3 billion in future stock buybacks, with the intention to back up to $1 billion over the next twelve months. The stock subsequently jumped 4% after-hours.

On Tuesday, Naveen Chopra, Chief Financial Officer of Roblox said:

“Investing in continued growth will always be our highest priority, but the strength of our balance sheet and free cash flow generation allows us to support industry leading innovation while simultaneously reducing dilution.”

As of Q1 2026, Roblox had $6.2 billion in total cash, cash equivalents, and investments (for a net $5.2 billion after subtracting their $1.0 billion dollars in debt). The company posted a consolidated net loss of $248 million in Q1.

While management has the cash on hand for a $3 billion buyback, their stock been taking hits recently — falling 28% over the past month (and 45% since the beginning of the year) as the company adjusts its safety standards. In April, the video game company slashed its full year guidance due to age-verification hurdles which have slowed growth.

markets

Cava rallies after Q1 results impress and management hikes full-year guidance

Cava jumped 8% after the bell on Tuesday after the fast-casual Mediterranean restaurant chain was able to bring in more customers and drive up more revenue than expected in the first quarter, with management signaling that this momentum is poised to continue.

Here are the numbers:

Q1 revenue of $434.4 million (compared to analyst estimates of $418.2 million).
Q1 adjusted EBITDA of $61.7 million (estimate: $57.3 million).
Full-year guidance for same-restaurant sales growth of 4.5% to 6.5%, up from its prior guidance of 3% to 5% and above estimates for 4.95%.

The company also posted traffic growth of 6.8% — blowing away salad competitor Sweetgreen’s traffic decrease of 11.2% in the first quarter.

“We’re creating a bit of a bridge in a K-shaped economy and becoming very accessible for the low-income cohorts,” CFO Tricia Tolivar told Restaurant Dive. “When we look at our restaurant stratified based on median household income, we’re seeing tremendous strength in the lower-income cohorts.”

The performance of these fast-casual establishments (or slop bowl chains) has been a way to keep an eye on our increasingly unequal economy. Interestingly, as especially younger consumers seem to be pulling back, at some of these restaurants, Cava continues to perform well.

markets

AMC rallies after CEO Adam Aron purchases 250,000 shares

AMC popped in postmarket trading after a filing showed CEO, Chairman, and President Adam Aron bought 250,000 shares on Tuesday.

With this $344,350 purchase, Aron now owns more than 2.4 million shares of the theater chain he runs. He’s one of the 20 largest holders, per data compiled by Bloomberg.

Tasha Matsumoto

Stocks fall amid inflation fears and spiking bond yields

Yields on 30-year Treasurys hit the highest level in 19 years as inflation worries due to elevated oil prices sparked fears of a rate hike.

Grizzly bear in Alaska

markets

Max Knoblauch14h

Nintendo climbs for third day as China ramps up its memory production

Nintendo shares are climbing on Tuesday, marking the company’s third straight session of gains — something it hasn’t done since early March. The Mario maker’s US-listed ADRs were up about 4% in Tuesday morning trading.

The return of the Switch 2 game bundle appears to have stoked investor optimism in the company’s console sales, while China’s accelerating memory production plans could alleviate some of Nintendo’s pain from the “RAMpocalypse.” For the better part of a year, memory prices have surged as AI demand hoovers up compute power. That’s squeezed video game console makers — and the broader consumer electronics industry.

Tracking the performance of Nintendo ADRs against memory giant Micron helps put this move in perspective. Nintendo is a big memory consumer, and not in the front of the line in terms of securing supply. Micron, obviously, benefits from its offerings being in high demand.

Tuesday’s price action is just a drop in the bucket, and comes as part of a recent stretch where the stock market’s high-flyers are having their wings clipped while beaten-up laggards rally.

In its first-quarter results on Monday, Chinese DRAM producer CXMT said it’s ramping up production and issued bullish guidance. The company is planning an IPO later this year, and it could be China’s biggest of the year.

For Nintendo, more global memory production could see rising costs start to deflate, improving margins in a vital year for its new console.

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