Home improvement retail giant Home Depot (NYSE:HD) will be reporting results tomorrow before market open. Here's what you need to know.
Last quarter Home Depot reported revenues of $42.92 billion, down 2% year on year, beating analyst revenue expectations by 1.6%. It was a solid quarter, as Home Depot beat expectations across the board--same-store sales, revenue, operating profit, and EPS all exceeded Wall Street estimates.
Is Home Depot buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Home Depot's revenue to decline 3.2% year on year to $37.64 billion, a deceleration on the 5.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.77 per share.
The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing ten downwards revisions over the last thirty days. The company missed Wall St's revenue estimates twice over the last two years.
Looking at Home Depot's peers in the home furnishing and improvement retail segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Floor And Decor delivered top-line growth of 0.9% year on year, missing analyst estimates by 1.4% and Sleep Number reported revenue decline of 12.6% year on year, missing analyst estimates by 7.7%. Floor And Decor traded down 10.5% on the results, and Sleep Number was down 14.3%.
Investors in the home furnishing and improvement retail segment have had steady hands going into the earnings, with the stocks down on average 1.2% over the last month. Home Depot is down 2.1% during the same time, and is heading into the earnings with analyst price target of $335, compared to share price of $291.
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The author has no position in any of the stocks mentioned.