In Kentucky, a possible tornado posed a threat to the USEC Inc. (NYSE: USU) uranium enrichment operations in Paducah, and company officials reported no injuries or any release of hazardous material from the plant. Just last week, USEC was the beneficiary of a ruling by the U.S. International Trade Commission to retain duties on low-enriched uranium imports from France.
If history is any guide, the devastation caused by the storms likely will provide something of a boost to shares of home improvement giants Home Depot Inc. (NYSE: HD) and Lowe’s Companies Inc. (NYSE: LOW). Rebuilding after Hurricane Sandy bolstered both companies last year, and we would expect a similar impact from Sunday’s storms as well.
Both companies report earnings this week, Home Depot on Tuesday and Lowe’s on Wednesday, and now might be a good time to take a look at what is expected.
Home Depot is forecast to report earnings per share (EPS) of $0.89 on revenues of $19.17 billion. The EPS estimate has been raised by a net penny in the past 90 days and is $0.15 a share higher than in the third quarter of last year. The estimates for the company’s fourth quarter, ending in January, call for EPS of $0.73 on revenues of $17.87 billion. The company earned $0.67 in last year’s fourth quarter.
Analysts’ consensus price target on Home Depot stock is around $85.70. Shares closed at $80.03 on Friday and were trading a bit higher early Monday at $80.11.
At Lowe’s, analysts expect EPS of $0.48 in the third quarter, up from $0.40 a year ago. Revenue is expected to come in at $12.72 billion, up about $650 million. In the fourth quarter, analysts expect EPS of $0.33, up from $0.26 a year ago, on revenues of $11.57 billion, about $520 million higher than in the year-ago quarter.
The consensus target price for the stock is around $51.10, and the stock was trading above that early Monday, at $51.75 after closing at $51.77 on Friday.
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