Market Overview

Home Depot Earnings Preview: Analyts Expect Higher EPS, Revenue

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Home Depot (NYSE: HD) unveils its next round of earnings this Tuesday, August 16, 2011. Here is Benzinga's everything-that-matters guide for this Tuesday's second quarter earnings announcement.

Earnings and Revenue:

Analysts are looking ahead to a positive EPS of 82 cents/share and revenues of $19.96 billion. Home Depot's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 72 cents/share on revenues of $19.41 billion. We'll have to wait for Tuesday to see if Home Depot reports higher EPS and a slight increase in revenue from the year-ago quarter, as analysts are expecting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 Q4 Q3 Q2
EPS Estimate $0.49 $0.30 $0.48 $0.71
EPS Actual $0.50 $0.36 $0.51 $0.72

Stock Performance:

As of August 10, 2011, Home Depot's current share price was $28.51. Since January 1st, shares of Home Depot have declined 17.5%. For a full 12 months, the return has risen by 18.5%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

  • Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Home Depot is a Moderate Buy. The strength of this rating has declined slightly over the past three months.

Competitors:

Want to check out the performance of Home Depot closest competitors? Take a look at some of the company's peers in the consumer discretionary sector.

  • Builders FirstSource (NASDAQ: BLDR): Hold with a -$0.08 recent quarter EPS
  • Lumber Liquidators (NYSE: LL): Hold with a $0.19 recent quarter EPS
  • Lowe's Companies (NYSE: LOW): Moderate Buy with a $0.34 recent quarter EPS

The building products-retail/wholesale company's industry has seen price/earnings growth of 0.8% during the current fiscal year.

Finally, a description of the company's main areas of operation: Home Depot is a home improvement retailer that sells an assortment of building materials, home improvement and lawn and garden products.

Take Action:

That's your advanced look at Home Depot's upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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