What To Expect From Home Depot’s (HD) Q3 Earnings

Anthony Lee /
2023/11/13 2:01 am EST

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.

Home Depot Total Revenue

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%.

Read our full analysis of Floor And Decor's results here and Sleep Number's results here.

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.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.

The author has no position in any of the stocks mentioned.