Home Depot, Lowes Poised For Q2 Top-Line Surprise?
Credit Suisse's Gary Balter expects both companies to meet or beat an expected four percent increase in same-store sales. He figures both will present top-line surprises.
"Channel checks with suppliers and other data point to strong sales," Balter said in a research note Monday, which he called "names to own ahead of earnings."
Sears has once again donated market share, Balter said, "and there remains a huge pent-up demand for housing repair and maintenance" of an aging U.S. housing stock.
Balter rates both companies at Outperform with an $87 target on Home Depot and $55 on Lowes.
Home Depot, set to post earnings before the market opens Tuesday, is expected to report profit of $0.92 per share, down from $1.24 per share a year ago. Revenue is expected to grow 4.7 percent to $23.6 billion, from $22.522 billion a year ago.
Lowes, slated to post Wednesday, is expected to show a 16 percent increase in earnings to $1.02 per share, compared with $0.88 a year earlier.
Lowe's revenue is forecast to grow 5.4 percent to $16.8 billion, from $15.7 billion the prior year.
Home Depot traded recently at $83.90 per share, up 0.25 percent; Lowes was up one percent to $50.50.
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|Aug 2015||BMO Capital||Maintains||Outperform|
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