Market Overview

Home Depot Earnings Preview


Home Depot (NYSE: HD) announces its next round of earnings this Tuesday, November 17. Here is Benzinga's everything-that-matters guide for this Tuesday's Q3 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Home Depot EPS is expected to be around $3.04, according to sell-side analysts. Sales will likely be near $31.90 billion. Home Depot EPS in the same period a year ago totaled $2.53. Sales were $27.22 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 20.16% increase in the company's EPS figure. Revenue would be up 17.18% on a year-over-year basis. Here is how the Home Depot's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 3.71 2.26 2.11 2.52
EPS Actual 4.02 2.08 2.28 2.53
Revenue Estimate 34.53 B 27.28 B 25.77 B 27.53 B
Revenue Actual 38.05 B 28.30 B 25.78 B 27.22 B

Stock Performance

Shares of Home Depot were trading at $277.16 as of November 13. Over the last 52-week period, shares are up 24.49%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Home Depot is scheduled to hold the call at 09:00:00 ET and can be accessed here.


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Posted-In: Earnings