Stock Story -
Home improvement retail giant Home Depot (NYSE:HD) will be reporting results tomorrow before the bell. Here's what to expect.
Home Depot met analysts' revenue expectations last quarter, reporting revenues of $36.42 billion, down 2.3% year on year. It was a mixed quarter for the company: Revenue and EPS were roughly in line with expectations. Looking ahead, the company guided to 1% year on year growth for both full year revenue and EPS. The former was in line while the latter was slightly below expectations.
Is Home Depot a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Home Depot's revenue to be flat year on year at $42.75 billion, improving from the 2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.56 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Home Depot has missed Wall Street's revenue estimates three times over the last two years.
Looking at Home Depot's peers in the home furnishing and improvement retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Floor And Decor posted flat year-on-year revenue, missing analysts' expectations by 1.7%, and Arhaus reported flat revenue, falling short of estimates by 1.4%. Floor And Decor traded up 4.1% following the results while Arhaus was down 8.6%.
Read the full analysis of Floor And Decor's and Arhaus's results on StockStory.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the home furnishing and improvement retail stocks have fared somewhat better, they have not been spared, with share prices down 5% on average over the last month. Home Depot is down 2.7% during the same time and is heading into earnings with an average analyst price target of $383.1 (compared to the current share price of $348.76).
